Discussion
I find it mildly silly that some people in tech are still talking about whether "artificial intelligence" tools work or not. For their cost it would be irrelevant even if they worked. Did you actually look at the numbers of the companies involved? Oracle has now a >4 debt/equity ratio, CoreWeave has almost 9. Values above 2 are considered abnormal and dangerous. This is the financial equivalent of smoking in a factory that produces explosives.
CoreWeave update and this is getting utterly ridiculous. They had a "breakout quarter" per the CEO which means that:
* Their debt/to equity ratio is now 16, for reference this is a value that in a normal company is usually well below 1. They were basically drowning in debt and the rate at which they're going under is accelerating. I've never ever seen a company with a value this high, it's almost a joke.
* Their cash flow is now minus 20 billions which is in ROFLMAO territory.
* Their already negative margins got even more negative. That is, they were unprofitable and now they're even more unprofitable.
Oh, and Nvidia owns a chunk of them, and they're a customer of Nvidia, and I think Nvidia also guarantees some of their debts? This is going to be totally fine, just make sure your pension fund is not invested in this bold-faced scam.
@gabrielesvelto "AI" fans: wow, the technology makes toothpicks all by itself! 😲 the technology: