As an additional note if I am right and this bubble pops (if a single startup goes under, literally any one) then it’s pretty much the collapse of the global financial system and an economic crisis at the level that the world has never seen before.
Literally, and I cannot stress this enough, the entire current system is built on the belief/sentence/mantra “number go up” with no regard for literally anything else.
Oh no it’s far worse than that. Private equity is heavily invested into data centers, and so are most large international banks. Private equity is playing the fun “volatility laundering” game where they are deliberately not reevaluating assets to make them look like they are worth more on paper than they actually are. They are basically saying this asset house is still worth the $50,000,000 it was valued at 5 years ago, never mind the fact it burned down and is now a superfund site and uninhabitable.
International banks are also issuing loans based solely on “just trust us bro” paperwork, using the AI companies paperwork as gospel and not looking at anything other than what they are presented with. The average cost of renting a Blackwell CPU is now $4.41 an hour, and that’s before the vast majority of these data centers have even come online.
Something something supply and and demand just trust us tho.
Currently, with data from all AI compute companies and services COMBINED in 2025, revenue comes out to 0.5831% of expenditures.
So for every $1,000,000 spent, you will make $5,831.
The only way out of this mess is if the banks either get paid back for their loans (see previous figures) or private equity gets a lot more capital… and starts paying back banks again (see previous figures comment about previous figures)
Powell’s term ends May 26th anyways, so them/trump trying this now means that things are SUPERFUCKEDTM and he is trying everything in his power to keep the crash from happening before the midterm elections.
Even that isn’t going to be enough. OpenAI has to start making payments on some (most) of these deals and startups starting this fall. If they don’t make these payments (it’s mathematically impossible for them to do so) then everything gets wiped out and the bubble pops.
Pro tip to all you investors here, if your hot new thing can’t do anything other than net360 terms and has double-pledged collateral, it’s not a good investment.
As far as it being like the dotcom crash, at least the few companies that were actually viable and legitimate survived and it “separated the wheat from the chaff” or something along those lines.
There is no viable AI company here, and the market will quickly find out that there isn’t even chaff to be found here, it’s mostly floor sweepings of post processed MDF sawdust and dirt.
I’m not glorifying ford and I’m pro union. This is actually pretty much why happened, just the same as ford realizing if he paid his workers enough to afford his products he could sell more of them.
Unions are there to help business owners remember that people need money to buy things and time to relax and enjoy life, and that the alternative to that is violence.
Something that seems to have been forgotten by most business leaders today.
I think you are underestimating the amount of them that are just so fucking stupid as well.
We originally got weekends off because Henry ford realized you needed time to go spend the money you were getting from your job and you couldn’t spend money while you were working.
That’s usually the kind of thing that gets you on trumps good side though
He let it slip that it’s the “arc du trump” a while ago so it’s probably just gonna be that. He did tha with the Kennedy center, and my money is that he’ll be renaming Reagan international airport as well.
I’m betting they are trying to make it hold off until after the midterms but yea pretty much
This way to the egress freedom!
Let’s face it, we’ve all had that thought that if we abandoned our morals or internal sense of justice we could make so much fucking money.
I personally think it’s a fragile man trying to create a legacy. It’s kinda just stolen valor but with buildings
Same. Is it gonna be half an inch or two feet? Who knows!
Probably half an inch though cause I just bought a new snow blower
Fellas is the great outdoors gay now?
Live in a blue state next to the county that was almost the reddest in the state, turns out their hospital system mentioning last year the amount of patients between the ages of 0-25 that were on Medicaid was 100% made a lot of them start to rethink things. Fuckin idiots
Honestly when it happens I think the servers will burst into flame from the sheer volume of memes trying to get uploaded so it’ll be like the cloudflare/AWS outages but more widespread.
I suppose it just fits with their “nothing matters but the headline” method though
Kind of? Except the lenders with the largest amounts of loans in order are: 1.Blue Owl (USA) (remember this company, it’ll be important as a canary probably) 2. Mitsubishi UFJ financial group (Japan) 3. JP Morgan Chase (USA) 4. Deutsch Bank (Germany) 5. BnP Paribas (France) 6. Morgan Stanley (USA) 7. Sumitomo Mitsui Banking Corporation (Japan)
So kinda like 2008 but you need (at the very least) Japan, Germany, France, the USA, and possibly South Korea to all coordinate and do bailouts cooperatively together to maybe have a chance.
Good thing we haven’t pissed off our allies or disrupted trade in general, and we also haven’t fucked with interest rates or bonds or anything so we have plenty of tools in our arsenal (god help us all, puts on all of our collective livers.)
There is no saving the AI companies because it is mathematically impossible for them to make money. You would have better luck investing in your local meth heads trying to make alchemy real using nothing but books published by Wizards of the Coast.