The AI Bubble Survives on $1.65 Trillion in Hidden Debt
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bobalot
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The AI Bubble Survives on $1.65 Trillion in Hidden Debt
This reminds of the 2007 financial crisis and 2000s tech bubble (ironically to a lesser extent).
Lack of regulatory enforcement, massive amounts of hidden debt, huge hype train, financial press mostly jerking off the bubble, and the masters of the universe telling the rest of us it all makes sense and don't worry our little brains about it.
"This statement, in its utterly clueless hubristic stupidity, cannot be improved upon. I merely quote it in admiration of its perfection." - Garibaldi
"Problem is, while the Germans have had many mea culpas and quite painfully dealt with their history, the South is still hellbent on painting themselves as the real victims. It gives them a special place in the history of assholes" - Covenant
"Over three million died fighting for the emperor, but when the war was over he pretended it was not his responsibility. What kind of man does that?'' - Saburo Sakai
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"Problem is, while the Germans have had many mea culpas and quite painfully dealt with their history, the South is still hellbent on painting themselves as the real victims. It gives them a special place in the history of assholes" - Covenant
"Over three million died fighting for the emperor, but when the war was over he pretended it was not his responsibility. What kind of man does that?'' - Saburo Sakai
Join SDN on Discord
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bilateralrope
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Re: The AI Bubble Survives on $1.65 Trillion in Hidden Debt
That's going to lead to some nasty lawsuits when it all comes crashing down.
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Solauren
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Re: The AI Bubble Survives on $1.65 Trillion in Hidden Debt
Like the banks did? Oh wait, to big to be allowed to fail.bilateralrope wrote: 2026-08-05 05:43am That's going to lead to some nasty lawsuits when it all comes crashing down.
I've been asked why I still follow a few of the people I know on Facebook with 'interesting political habits and view points'.
It's so when they comment on or approve of something, I know what pages to block/what not to vote for.
It's so when they comment on or approve of something, I know what pages to block/what not to vote for.
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bobalot
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Re: The AI Bubble Survives on $1.65 Trillion in Hidden Debt
In terms of the special purpose vehicles used to hide the debt, nothing is actually illegal.Solauren wrote: 2026-08-07 10:47amLike the banks did? Oh wait, to big to be allowed to fail.bilateralrope wrote: 2026-08-05 05:43am That's going to lead to some nasty lawsuits when it all comes crashing down.
The underwriters pumping the companies they are underwriting was basically deregulated recently (the rules around were weak to begin with).
I have to agree. Nothing is going to happen legally.
"This statement, in its utterly clueless hubristic stupidity, cannot be improved upon. I merely quote it in admiration of its perfection." - Garibaldi
"Problem is, while the Germans have had many mea culpas and quite painfully dealt with their history, the South is still hellbent on painting themselves as the real victims. It gives them a special place in the history of assholes" - Covenant
"Over three million died fighting for the emperor, but when the war was over he pretended it was not his responsibility. What kind of man does that?'' - Saburo Sakai
Join SDN on Discord
"Problem is, while the Germans have had many mea culpas and quite painfully dealt with their history, the South is still hellbent on painting themselves as the real victims. It gives them a special place in the history of assholes" - Covenant
"Over three million died fighting for the emperor, but when the war was over he pretended it was not his responsibility. What kind of man does that?'' - Saburo Sakai
Join SDN on Discord
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Solauren
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Re: The AI Bubble Survives on $1.65 Trillion in Hidden Debt
More then likely what will happen is the loans will become due or default in some way, and the US government will bail them out.
Depending on the company in question.
Some of the AI companies will not have any problems. I don't believe Microsoft Copilot is in danger unless Microsoft itself goes down.
(I can see further development of Copilot slowed, but I can't see Copilot vanishing without a replacement/upgrade).
However, any where AI is the primary income source, will either need a government bail out, or will probably crash and burn.
Hopefully at least 1 of the 2d to 3d AI convertors (preferably one with segmentation) will survive and continue on.
Depending on the company in question.
Some of the AI companies will not have any problems. I don't believe Microsoft Copilot is in danger unless Microsoft itself goes down.
(I can see further development of Copilot slowed, but I can't see Copilot vanishing without a replacement/upgrade).
However, any where AI is the primary income source, will either need a government bail out, or will probably crash and burn.
Hopefully at least 1 of the 2d to 3d AI convertors (preferably one with segmentation) will survive and continue on.
I've been asked why I still follow a few of the people I know on Facebook with 'interesting political habits and view points'.
It's so when they comment on or approve of something, I know what pages to block/what not to vote for.
It's so when they comment on or approve of something, I know what pages to block/what not to vote for.
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bobalot
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Re: The AI Bubble Survives on $1.65 Trillion in Hidden Debt
I disagree on a bailout.
My reasons are:
1. The financial sector was critical to the US economy. Despite all the circlejerking, AI isn't.
2. The US government can't afford a bailout of this magnitude.The proposed bailout would dwarf the auto industry bailout.
My reasons are:
1. The financial sector was critical to the US economy. Despite all the circlejerking, AI isn't.
2. The US government can't afford a bailout of this magnitude.The proposed bailout would dwarf the auto industry bailout.
"This statement, in its utterly clueless hubristic stupidity, cannot be improved upon. I merely quote it in admiration of its perfection." - Garibaldi
"Problem is, while the Germans have had many mea culpas and quite painfully dealt with their history, the South is still hellbent on painting themselves as the real victims. It gives them a special place in the history of assholes" - Covenant
"Over three million died fighting for the emperor, but when the war was over he pretended it was not his responsibility. What kind of man does that?'' - Saburo Sakai
Join SDN on Discord
"Problem is, while the Germans have had many mea culpas and quite painfully dealt with their history, the South is still hellbent on painting themselves as the real victims. It gives them a special place in the history of assholes" - Covenant
"Over three million died fighting for the emperor, but when the war was over he pretended it was not his responsibility. What kind of man does that?'' - Saburo Sakai
Join SDN on Discord
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Ralin
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Re: The AI Bubble Survives on $1.65 Trillion in Hidden Debt
Counterpoint, the US government is dominated by the far-right and fascists and fascist adjacent people seem to have a strong ideological affinity with 'AI.' And no small amount of financial connections to it themselves.bobalot wrote: 2026-08-09 03:25am I disagree on a bailout.
My reasons are:
1. The financial sector was critical to the US economy. Despite all the circlejerking, AI isn't.
2. The US government can't afford a bailout of this magnitude.The proposed bailout would dwarf the auto industry bailout.
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bilateralrope
- Emperor's Hand
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Re: The AI Bubble Survives on $1.65 Trillion in Hidden Debt
If an AI is running locally, it should keep working after things crash.Solauren wrote: 2026-08-08 09:32am More then likely what will happen is the loans will become due or default in some way, and the US government will bail them out.
Depending on the company in question.
Some of the AI companies will not have any problems. I don't believe Microsoft Copilot is in danger unless Microsoft itself goes down.
(I can see further development of Copilot slowed, but I can't see Copilot vanishing without a replacement/upgrade).
However, any where AI is the primary income source, will either need a government bail out, or will probably crash and burn.
Hopefully at least 1 of the 2d to 3d AI convertors (preferably one with segmentation) will survive and continue on.
If it's running at a data center, expect it to shut down or get more expensive. Right now investors think that AI is a sure thing that will eventually produce a return for all the money spent on it. That seems like it will shift to demands for AI to become profitable very quickly if companies don't cut their losses.