'Banks are now trying to offload the AI data center debt they just underwrote JPMorgan and MUFG are part of the group that has spent more than six months trying to distribute $38 billion in construction debt tied to a Texas and Wisconsin data center project leased to Oracle.' startupfortune.com/banks-are-n… That's usually the beginning of the end of a bubble. #debtdeflation
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Will data center debt become the mortgage-backed securities of this decade, leading to the same sort of financial crisis as in the home mortgage crisis?
OPINION: "However, tighter monetary policy carries a risk: It falls disproportionately on sectors that are already struggling and highly sensitive to interest rates, while having less effect on one of the economy’s strongest sources of demand—the booming AI investment cycle," John W. Diamond writes. mississippifreepress.org/opini…
But here we run up against an unpleasant reality: the tech sector values the #LLM craze chiefly because it's outrageously inefficient and destructive, always needing more and more. The tech grifters get richer the more money and resources are blown on the fad. Subsidiary corporate industries like the #energy sector and the #gas sector (and increasingly the #nuclear sector) are themselves ecstatic at the runaway consumption. As I keep saying: the GenAI fad makes the most sense if you stick to the assumption that it's not really supposed to work. It's supposed to be big and hungry, more than anything else.
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And if a pack of terminally stupid managers and executives think that LLM gibberish is a fine substitute for human activity, so much the better. At some point the penny has to drop: high-tech profit-seekers are the enemies of humanity. There is no honor in tech CEOs or entrepreneurs. They do the world no vital service. They are not builders. They are not the vanguard of science and intellect; they're gluttonous, avaricious, and they're destroyers. ~Chara of Pnictogen
