Reposted by @nyadnar17.bsky.social
Premium Newsletter: AI data centers are low-margin, high-capex time bombs with low gross margins possible only in perfect circumstances, fueled by junk-grade debt. Without $100bn+ in new, non-hyperscaler demand by 2028, the majority of these loans go unpaid.
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Premium: The AI Data Center Financial Crisis
Since the beginning of 2023, big tech has spent over $814 billion in capital expenditures, with a large portion of that going towards meeting the demands of AI companies like OpenAI and Anthropic.
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