Jed Brown reposted
Debt finance is really hard to understand for those not well-versed in financial markets, so here's a helpful explainer. A key takeaway: investors in debt are seeing big problems with Big Tech's thesis on AI and charging more to cover its risk-taking.
Anthropic's IPO filing yesterday revealed at least* $550bn in off-balance sheet debt, for a company with $16B in annual revenue. Paying its bills will require Anthropic to sustain implausible revenue growth given the pressures that are squeezing their--and the whole AI ecosystem's--margins. A 🧵