Big Tech is hiding $1.65tn in off-balance-sheet AI debt

https://thenextweb.com/news/tech-giants-hidden-off-balance-sheet-debt-ai

30 points · 2 comments · view on lemmy.world

2 Comments

XLE@piefed.social · 10 pts · 35d

Enron-esque indeed.

From the Nikkei report: This looks so bad. It's often been repeated but eventually these companies will have to pay the reaper.

Today's AI industry is partly supported by demand generated by circular investment. Nvidia and tech giants invest in data center operators and AI companies, with that money then turning into GPU and cloud usage fees. Actual demand is difficult to see, increasing the likelihood of overinvestment in data centers.

DarrinBrunner@lemmy.world · 2 pts · 35d

Is that all?