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by misja111 14 days ago
> What’s the argument for OpenAI being so inherently critical and interweaved with the rest of the economy that it can’t be allowed to fail?

AI companies are more and more interweaved with the economy because half the world is owning their stocks or has lent them money. Or, they have invested in companies that in turn have invested in AI. It is very similar to the situation before the credit crisis.
1 comments
disgruntledphd2 14 days ago
Sortof, much of the financing up to now has been from equity, rather than debt (with the exception of Oracle).

As the funding profile moves more towards debt, there's a bigger chance for problems as leverage tends to amplify the bad outcomes.

If Big AI (basically Mag 7) continue to issue debt, then there may be financial stability risks if it all blows up. The numbers are fine now, but the trend line is concerning (hence the BIS paper).

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