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Comment by cmiles8 | Hacker News Reader

It completely unclear where this 1.65T is going to come from to pay the bill. Revenue from people buying AI doesn’t even come close to covering it, even with crazy aggressive assumptions about the cashflow that could be generated from that.

The Wall St vs Silicon Valley showdown that’s setting up here looks like it will be quite epic. If last week was any preview, get your popcorn ready.

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From the lender's standpoint they can repossess the data center.

It's not like their collateral is a bunch of NFTs.

Do the lenders actually have the right to that collateral? What are the details in these private SPV deals?

And is it collateral if it has yet to be built?

(I'm asking because I want to correct my own ignorance.)

The number is large - but I'm not quite sure it's existential. The hyperscalers have been making a ton of money and I'm not quite convinced that 200B of debt for Amazon is "world ending".

Amazon is setting itself up to get bruised a bit, but it has a sufficiently diverse business and cash flow from non AI things that it will be fine.

Pure play companies, startups, and investors are looking a lot less safe. For example there are other pure plays where debt service alone is like 25-30% of revenue, which is just insane numbers. There are also many investors and funds with extremely precarious positions in AI that are at risk of unraveling with a bang like we saw last week.

AWS made 46B profit last year and will make prob close to 70B this yea so even 400B is very far from "world ending"

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