The Other Leverage in Software & AI

kept by eddie feb 05

AI disruption threatens to compress software revenue, putting at risk the $475 billion in BDC loans and highly-leveraged data-center debt built on that revenue's durability.

Nvidia’s Risky Business – Stratechery by Ben Thompson
Nvidia is partnering with major financial firms to create $500 billion in financing platforms for AI infrastructure, transforming compute into an investable asset class and expanding systemic risk in the AI buildout.
also on KKR
The Teaser Period: Why the AI Boom Is Hitting a Reset Wall
The AI boom mirrors 2008's housing crisis as take-or-pay compute contracts create a 2027-2028 'reset wall' where payments start despite labs' revenue being insufficient to cover obligations.
also on CoreWeave, Oracle, #infrastructure, #business-strategy, #ai
How GPUs Became the Newest Financial Asset
GPUs are being financialized as a new asset class through debt securitization, derivatives, and tokenization, despite rapid obsolescence threatening traditional financial infrastructure.
also on CoreWeave, #finance, #ai
How Larry Ellison’s Wealth Differs From Other Tech Billionaires - WSJ
Larry Ellison's $212.9 billion net worth is almost entirely in Oracle stock, which he pledges as collateral for personal loans to fund assets like superyachts and a Hawaiian island.
also on Oracle, #finance, #business-strategy
Five Takeaways From the Times Investigation Into Larry Ellison’s A.I. Gamble
The Times investigation reveals Oracle incurred massive debt to build global AI data centers, with repercussions extending beyond the company itself.
also on Oracle, #infrastructure, #business-strategy, #ai