Another in a growing list of evidence that the financial underpinnings of the AI mania are coming unglued

[abucci@buc.ci]

Another in a growing list of evidence that the financial underpinnings of the AI mania are coming unglued.

One speaks of "exposure" to a concerning risk, not to a bonanza of wealth creation. Some of the quotes in this article seem to be cherrypicked to minimize alarm, which I disagree with: there is cause for alarm. Looking between the lines (e.g. use of words like "exposure" and "choking"), one sees a dismal picture emerge.

Banks seek to offload risk to avoid ‘choking’ on data centre debt

Global lenders explore private deals and risk transfers to cut exposure to AI boom

From https://www.ft.com/content/08aba5e4-5834-4e79-a48d-989a2c5bad0f (paywalled)

#AI #GenAI #GenerativeAI #AgenticAI #LLMs #Claude #ChatGPT #Gemini #NoAI #AIBubble #AIHype

[fluidlogic@oldbytes.space]

@abucci thank you for this.

Seems correct to read this as "coded language alerting investors to the imminent collapse of the AI data centre scam", no?

FT link unpaywalled: https://archive.ph/GoRyM

[abucci@buc.ci]

@fluidlogic@oldbytes.space

Seems correct to read this as "coded language alerting investors to the imminent collapse of the AI data centre scam", no?

That's my read, yes. I suppose FT has a readership representing various stages of understanding the AI and data center situation, and they are attempting to reach as much of that readership as possible. Along similar lines I also suppose they are trying to avoid being labeled alarmist, which they would be if they're perceived to be ringing actual alarm bells too soon. So their language and choice of quotes hedges a bit.