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The real question would be the debt on the GPUs. If a hyper scalar puts 100B from profits into data centers, and borrows 400B against the datacenters (or their
by lumost 1y ago
The real question would be the debt on the GPUs. If a hyper scalar puts 100B from profits into data centers, and borrows 400B against the datacenters (or their suppliers do!). Then the buildout could be quite problematic.
If it’s just profits getting invested + some VC exuberance… I don’t actually know if it matters. If zuck simply shut off the money spigot and never spoke on ai again… would anything actually happen?
- claudenm 1y agoOnly oracle has taken on debt so far, among the hyper scalers.
- toomuchtodo 1y agoCoreWeave has taken on $11.2B in debt with interest rates ranging from 7% to 15%, paying $250M in interest on that debt last quarter on just $19 million in operating income. Half of their assets are GPUs, depreciating over six years. (per Bloomberg)