[disgruntledphd2]

> * big banks are trying to get out of their data center loan commitments, even selling that debt at a discount. From the article:

This isn't necessarily a sign that they don't believe in the data centre loans, it's more than banks are basically required to avoid concentrated risk, because of the regulations we (mostly correctly) imposed upon them post GFC.

Now, personally I'm not convinced there's enough demand for AI services that these datacentres make sense, but we'll see I guess.

[CodingJeebus]

This just isn't true. Banks never offload commercial debt to non-bank entities at a discount unless they're under financial duress or they believe the loss is worth more than keeping the debt on the books.

[disgruntledphd2]

Concentration requirements can apparently cause this.

Let me dig up the FT article I read about this.

Here's the article: https://www.ft.com/content/08aba5e4-5834-4e79-a48d-989a2c5ba...

And this quote:

> Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Email [e-mail] to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found at https://help.ft.com/faq/gifting-and-sharing-an-article/what-.... https://www.ft.com/content/08aba5e4-5834-4e79-a48d-989a2c5ba...

> Investors expect more such moves as banks come up against risk limits that restrict their exposure to individual borrowers or sectors, and seek to free up balance sheet for more lending.

[marcosdumay]

There seems to be not enough of anything.

Apparently, there's not enough demand for the datacenters already operating, there's not enough energy to power all the computers the datacenter companies already brought, there's not enough people to build the datacenters already planned...

It's not clear if there's enough money available to go for those giant IPOs, and it's not clear if there's enough GDP available to cover for all the investment contracts out there. But inflation and deregulation can solve those ones.

All of that would make sense iff those companies did get something close to AGI. But they haven't, what they have is their bullshit machines and a bamboozled public repeating their lines.