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> AI’s insatiable need for debt has so far been matched by investors’ appetite for it, but they may turn nauseous on the belly-busting volumes coming from tech
by seizethecheese 3mo ago
> AI’s insatiable need for debt has so far been matched by investors’ appetite for it, but they may turn nauseous on the belly-busting volumes coming from tech giants.
Headline doesn't really match the facts in the article. The article seems to say "hyperscalers are borrowing an enormous amount and so far people are lending to them. Other people are worried that this will stop".
- deleted 3mo ago[deleted]
- bigbuppo 3mo agoHistorically speaking, when the lending spigot is turned off it happens suddenly. But hey, it will be different this time. My future's so bright I gotta' wear million dollar shades.
- seizethecheese 3mo agoIt clearly will be a big problem when the lending stops, there’s just no evidence of it in the article.
- kube-system 3mo ago> "hyperscalers are borrowing an enormous amount and so far people are lending to them. Other people are worried that this will stop" You say this as if when "lending stops", it isn't a big deal. What you're describing is a concern for a collapse in finance markets.
- seizethecheese 3mo agoSure, I’m just saying the article doesn’t have any evidence of the lending stopping.
- kube-system 3mo agoBy the time we have that evidence, the crash is already beginning. What we have today is evidence that lending is overextended unless AI hyperscalers start to make huge profits.
- senko 3mo agoSo, what happens when it stops in this particular instance? The article is about hyperscalers which are massively profitable irrespectively of AI. If the lending stops and this leads to paused or cancelled infra projects, but these companies are still able to service their existing debts, how does this inevitably lead to a collapse? Hoping for a more nuanced analysis than “la la la we all know this time isn’t different”. Every time is different, and it’s instructive to know how different each time is.
- billywhizz 3mo ago"people are lending to them" is doing a lot of heavy lifting here. e.g. https://prospect.org/2026/08/03/ai-bailout-could-be-baked-into-bubble-private-equity-life-insurers-loans/ https://prospect.org/2026/08/03/ai-bailout-could-be-baked-in...
- seizethecheese 3mo agoThe article transparently documents that people are lending to them.
- billywhizz 3mo agoi guess you didn't bother reading it then.