#financial-risk

#financial-risk

AI companies are spending untold billions of dollars building out data centers to support behemoth AI models - and a return on their investments is still nowhere in sight. Valuations have soared well past the trillion-dollar mark, with AI chipmaker Nvidia becoming the world's most valuable company with a market cap that recently topped $4.5 trillion. But that's all, despite AI company revenues barely making a dent on balance sheets.

As the Washington Post observed in newreporting on the AI bubble, speculative investment into AI development is now the dominant force driving the US economy. By the numbers, the US GDP has grown at a rate of 1.6 percent so far this year, on pace to hit the 2.8 percent growth it achieved in 2024. That's all well and good on paper, except for the troubling fact that two-thirds of that growth came from AI, per WaPo 's analysis.

Since late 2022, the local biotech industry has experienced a continuous wave of layoffs due to failed trials, slashed drug pipelines, and stock price collapses.

"He had the equivalent of a very large unsanctioned and unsecured overdraft which had no upper monetary limit. ... a recipe for potential disaster."