Risk is rising as big tech companies like Oracle — the ultimate financial source of the Ellison media empire — need to turn to the bond market for staggering sums to finance data centers.
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- ZILtoid1991@lemmy.worldEnglish12 hours
We could have prevented this, but the boomers were cheering that their sons have to go back to the factories from all the office jobs, AI promised to automate…
- Sam_Bass@lemmy.worldEnglish15 hours
crash is coming. not here yet but these businesses cant manufacture acceptance
- HaraldvonBlauzahn@feddit.orgEnglish6 hours
What would be consequences of a crash?
One thing I’m thinking is that a crash would likely lead to higher interest rates for everything… but fossil energy is also highly capital-intensive, too, and runs only on cheap borrowed money, too, therefore… wait it is hard to grasp how that could turn out.
Anyone has tips for potato gardening?
- Sam_Bass@lemmy.worldEnglish6 hours
ram prices would tank, thereby lowering prices on everything that uses them for one
- WhyJiffie@sh.itjust.worksEnglish4 hours
why would they tank? factories are making different kinds of chips for AI hardware
- jj4211@lemmy.worldEnglish1 day
Fun fact, over half of the S&P 500 have market caps over 10x revenue.
This has not ended well for companies in the past.
- heartSagan5@lemmy.zipEnglish8 hours
Yeah. In the US, the system works like this. For every dollar minted, it is an IOU to the very big bank as per the contract.
- HaraldvonBlauzahn@feddit.orgEnglish6 hours
Both is the same. The only difference might be who is holding the bag in the end.
- 7 hours
The money being spent to build data centers, buy equipment and electricity is real. The fact that openAI owe softbank $40bn is real.
The future returns from these present day expenditures are imaginary. Whether softbank get their loan back is speculative. Equity raises are even more so.
- Talcosis@lemmy.zipEnglish1 day
Kind of an odd phrase, given that money as a concept is fundamentally both of those things at all times.
1 dayYou know what? That’s completely fair. We made it up, like the easter bunny.
- 1 day
WHAT? eastern bunnies are made up? you cannot just drop that on a innocent stranger?!
Oops. I-i mean San- nope. I - pay me no attention I’m just a crazy person on the Internet.
Don’t worry, it will be real money when you have to pay your part.
- cecilkorik@lemmy.caEnglish1 day
Or is it money that has now been turned into fictional non-existent money, because it was stolen from our own future, where it was previously being held (we thought) safely in trust for us. They’re stealing the money from us. From our taxes, from our government funds and institutions, from our pensions. It’s our money. At least it nominally was, before all this happened. We’re being looted. The robbers are in our vault, they are packing our money into bags labelled “AI” as we speak.
- 15 hours
Maybe that’s why the stock market is down. Billionaires are selling and cashing in from their own stocks. They know the bubble will burst soon enough.
Which means someone is out there collecting the interest cost of all that magic money…
Guess who it is!
Hey, Satan got shafted. They asked some questions about the status quo, felt the hereditary monarchy was unfair, led a popular protest, and got exiled as a result. No more anti-Satan Jehovan propoganda.
- Gregers@lemmy.worldEnglish1 day
Depends on if you look at the character from a Christian point of view, or as an outsider. Because from a objective point of view, he looks like the good guy in the bible. I was just telling my point from their point of view
- CheeseNoodle@lemmy.worldEnglish16 hours
Also the magic fruit seems kinda like actual sapience by todays standards? Pretty great thing to have.
- DickFiasco@sh.itjust.worksEnglish1 day
Yeah, that title doesn’t make any sense. Do they mean AI companies are moving from equity to debt financing? I can’t get to the article (paywalled).
- frongt@lemmy.zipEnglish1 day
Credit is a huge part of the advancement of civilization. The “one treat now vs. five treats later” test is used as a measure of intelligence for a reason.
- cecilkorik@lemmy.caEnglish1 day
It’s used as a test of basic intelligence, but it’s also seriously incomplete and maybe a test of more advanced intelligence would be to have someone explain at least some of the many ways in which it’s incomplete.
If I told you to let me have your 5 treats later so that I can turn them into more treats than there are particles in the entire universe and I’ll give you half, you should probably call bullshit on that.
If I’m starving to death and I’m not going to survive until however much “later” is unless I eat one of those treats right now, then choosing “five treats later” would actually be the wrong choice.
This is not always a clear choice, either. The test is interesting, and it tells you a lot about how certain people think, but it isn’t universal, and it doesn’t actually prove anything. You need to understand and interpret why the answer makes sense in each context. And the context is always changing. We live on a changing planet. It is time to start thinking about how the context of “5 treats later” might have changed, and whether we are going to survive until whenever “later” is, and whether it is actually physically possible to provide all of those 5 treats in the hypothetical future that we are imagining.
- pr06lefs@lemmy.mlEnglish1 day
What’s cool is we’ll soon be propping these shitbags up with tax money, so the whole thing doesn’t go bankrupt.
- moustachio@lemmy.worldEnglish1 day
You mean we’ll be in the streets when they try to right? Because just being defeatist about it is an absolute pathetic take.
Too big to fail. Privatize the profits, socialize the losses. Unless we can vote in enough representatives that won’t put up with that absolute bullshit.
- nosuchanon@lemmy.worldEnglish12 hours
Yeah, this is exactly the problem with monopolies. They got too big to fail and they expect a fucking bail out from the taxpayers every time.
We should let them fail. We should break them up in a smaller pieces. The pieces that don’t make any money disappear. The ones that have some financial stability should continue to exist.
But the true purpose of capitalism is efficiency through Consolidation. The only way to limit capitalisms damaging affects is by regulation. Which will never happen in our current environment because the capitalist oligarch scumfucks bought all parts of the government in order to continue to receive free money from the banks and the government when they fuck up.
Oh by the way, they also want to take all the proceeds from their ludicrous stoxk valuations when the stock market is good and they want to take your pension fund when the stocks tank because they fucked up and spent all of everyone else’s money.
Maybe if we don’t pay them out this time private equity will learn something and stop buying and ruining companies in order to invest the ridiculous proceeds into stupid risky speculation on unproven technology.
- moustachio@lemmy.worldEnglish1 day
We can also mobilize, and get very armed as a deterrent to illegal violence towards protestors.
- SaharaMaleikuhm@feddit.orgEnglish1 day
No worries, it’s only American tax payers footing the bill and they voted for this.
- Curiositymonger@reddthat.comEnglish1 day
People in the rest of the world will also be affected for at least two reasons:
- Pension funds throughout the world is invested in US big tech, and if these companies fall in value, so will their pensions.
- A financial crisis caused by US big tech could cause a US recession which will also damage the economies of the rest of the world.
As I’ve pointed out elsewhere pension funds may be exposed to AI but the money in your personal fund doesn’t need to be. If you haven’t already moved your retirement investment out of shares then see if that’s possible. I’ve changed mine to conservative settings already and looking at the list its mainly in cash, property, farming and a few manufacturers now with no tech stocks at all. That seems a sensible mix for when the market collapses this time around.
- Curiositymonger@reddthat.comEnglish24 hours
You can make a change like this? Wow, I’ll have to look into if my fund can do this
- brsrklf@jlai.luEnglish1 day
If we’re counting training material and the environmental cost they’re passing onto everyone else, also stolen money.
- 1 day
Tech executives stuffing suitcases with the cash of average families pensions and 401k funds before saluting and running out the back door for their new mega yacht moored in the cayman islands.
