| I do not work in finance, perhaps someone here can tell me if I have the wrong impression on the situation here: Tech giants with AI interests, hyperscalers, have used "special purpose vehicles" — shell companies — to quietly issue credit to AI companies, and these AI companies have used this line of credit to purchase/lease compute hardware/infrastructure primarily from their creditors, inflating the demand and price of said hardware. And much of the future infrastructure has yet to be constructed, and the hardware available now will at some point become obsolete or at least decrease in collateral value. But the credit doesn't actually come from the hyperscalers themselves, as it exceeds their actual cashflow, so it comes from investment banks and/or private investors/lenders... who actually absorb the majority of the risk then? And the big banks are currently offloading their loans at discounted rates, while simultaneously trading in swaps against hyperscalers? I presume the reason for the shell companies/private funding shadiness, is to keep debt off-the-record and perhaps avoid regulation / exceed risk tolerance limits. Just how exposed are the banks and the hyperscalers in all this? |