So this is what makes the AI bubble worse than the Dotcom bubble. We are looking a company like Oracle taking on $38 billion in debt to fund their AI infrastructure buildout to deliver a 300+ billion RPO pipeline largely of OpenAI (a highly unprofitable business) commitments.

When this bubble bursts it will be an asset bubble. At least the Metaverse bubble was asset-lite.

AI gambling (as a recent tech CEO called it), on margin with banks bankrolling the bets. This feels massively worse than the Silicon Valley Bank collapse and subsequent bail out.

Sad given that Oracle, in my view, had a very sensible, high-cashflow, cloud business and strategy. Now they are bleeding cash and taking on tremendous debt with neocloud.