Comment by hollerith
9 hours ago
Huh? Surely most of the investment in AI labs is equity investment, not debt (so it can't be defaulted on).
9 hours ago
Huh? Surely most of the investment in AI labs is equity investment, not debt (so it can't be defaulted on).
The latest xAI GPU SPV is 2/3 debt; maybe that's a trend or maybe not. The debt will be defaulted and the equity will be recapitalized to almost nothing. Same outcome.