Comment Too Big to Fail (Score 2) 71
Anthropic is one of the 'flagship' US AI companies. They are the first domino in a long string. I don't think it's any surprise to folks here that AI is not profitable yet - in fact it operates at a huge loss.
AI is the big draw for RAM and Video Card hardware. They're also a big contractor right now for construction companies and utility companies.
The US government will *not* allow them to fail. There is a bailout coming within the next 5 years. Why? The technology is 'strategic'. The resulting domino fall will gut the ram prices, the video card prices, and put a huge hurt on construction and utilities.
These AI companies have been using their inventory of video card, ram, and other chips as collateral for huge loans to buy MORE. If Anthropic goes bankrupt, that house of cards falls. Nividia and a number of other suppliers are left holding the bag to the tune of billions or trillions.
We - the taxpayers - will end up paying for all of this. And as it happens, we will see an AI crash, a tech crash, and a blue chip crash. For comparison, there is MORE speculative AI cash floating around than there was during the 2008 sub prime crash.
40% of the S&P is tied up in AI speculation. 50-60% of the Nasdaq is tied up in AI related companies. And 15-20% of the Dow Jones is tied up in AI.
This has every indication that it will dwarf both the subprime and the automaker bailouts.
AI is the big draw for RAM and Video Card hardware. They're also a big contractor right now for construction companies and utility companies.
The US government will *not* allow them to fail. There is a bailout coming within the next 5 years. Why? The technology is 'strategic'. The resulting domino fall will gut the ram prices, the video card prices, and put a huge hurt on construction and utilities.
These AI companies have been using their inventory of video card, ram, and other chips as collateral for huge loans to buy MORE. If Anthropic goes bankrupt, that house of cards falls. Nividia and a number of other suppliers are left holding the bag to the tune of billions or trillions.
We - the taxpayers - will end up paying for all of this. And as it happens, we will see an AI crash, a tech crash, and a blue chip crash. For comparison, there is MORE speculative AI cash floating around than there was during the 2008 sub prime crash.
40% of the S&P is tied up in AI speculation. 50-60% of the Nasdaq is tied up in AI related companies. And 15-20% of the Dow Jones is tied up in AI.
This has every indication that it will dwarf both the subprime and the automaker bailouts.