It's almost as if they bet on the wrong thing and lost a ton of money in the process. I wonder what could that be?
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This is a deal with the devil kind of situation, but instead of exchanging their souls for immeasurable riches they used it as a collateral for a gigantic loan, then they spent all the money buying jackets for Jensen Huang and now they're indebted, broke and soulless.
So about that AI bubble we were talking about
(in case you were wondering, among the generalized bloodbath Intel is losing 30% of its value in a single sitting)
The headlines are brutal, as they ought to be
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I'm not gonna bore you with more share price graphs but know that the companies at the center of the AI bubble - Oracle, CoreWeave, Nebius - are still sinking like stones. And this will have very real world consequences as significant amounts of those shares have been used to guarantee the debts they've accumulated. It's incredible seeing the tech sector - historically flush with cash and free of debts - be about to experience its very own version of the subprime mortgages crisis.
The fundamental reason I want nothing to do with the AI industry is that everything in and around it is morally repugnant. However there are many more industries that share that aspect, like the defense and fossil fuel industries. What's wild is that all those industries have been profitable while the profitability of the AI industry is fuck all. An extraordinary case of being morally and literally bankrupt at the same time.