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I do wonder how all this ends: tomtunguz.com/nvidia_norte.... The is, for sure, real money in the AI market. The investing behavior is insane though. Nvidia investing tons of money into their customers and *GPU-backed debt* is fucking wild.

CoreWeave seems like one of the bigger risk drivers in this whole market. www.ainvest.com/news/corewea.... Borrowing against infrastructure collateral that would drastically devalue in a bubble collapse is *insane* to me.

"CoreWeave's (CRWV) aggressive debt strategy has sparked a wave of borrowing among AI startups, with companies like Fluidstack securing billions of dollars in loans using AI chips as collateral"

@paulkedrosky.com is pretty smart; the referenced podcast (www.theringer.com/podcasts/pla... ) is well worth a listen. Feels like we're in the 6th or 7th inning to me. Plenty more money to be made, but the cracks are showing.

This was such a good listen, thanks! I didn't really think about the fact that GPUs deprecate at such a relatively fast rate. With ~60% of the investment in new data centers being GPU acquisition AND firms using GPUs as collateral for significant amounts of debt... that seems bad.

Another thought... given AI investment is representing ~50% of GDP growth I think it's beyond likely that this is masking an overall ailing economy. The current administration's policies are broadly detrimental to growth and without this boom driving I suspect the overall outlook is bleak.