Re:The AI bubble is 17 times the size of the dot-com frenzy ...
by deepanwadhwa on Monday October 06, 2025 @01:49PM
(#45494040)
I did not know GPU backed loans was a thing. It seems risky.
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Re:The AI bubble is 17 times the size of the dot-com frenzy ...
by baggachipz on Monday October 06, 2025 @01:50PM
(#45494062)
It's not just, risky, it's insane. The GPUs lose value almost as soon as they're installed.
Re:The AI bubble is 17 times the size of the dot-com frenzy ...
by lxgr on Monday October 06, 2025 @01:55PM
(#45494118)
On the other hand, auto loans are a thing. It’s all a question of how the assets are valued.
Re:The AI bubble is 17 times the size of the dot-com frenzy ...
by baggachipz on Monday October 06, 2025 @02:02PM
(#45494203)
Do you mean car title loans? Because that's basically what the GPU-backed loans are. Car title loans have terrible terms due to the diminishing value of the car. These GPU-backed loans are being booked at much, much more favorable terms, as if the GPU holds its value for a long time. This simply isn't the case, so if the loan is defaulted on, the loaner will have a rude awakening when all they get are worthless GPUs.
Re:The AI bubble is 17 times the size of the dot-com frenzy ...
by rtkwe on Monday October 06, 2025 @02:05PM
(#45494242)
Isn't that part of why down payments are so necessary? It takes the loan amount below the immediate depreciation amount of the asset so the bank/lender is less exposed to the risk.
Re:The AI bubble is 17 times the size of the dot-com frenzy ...
by lxgr on Monday October 06, 2025 @03:41PM
(#45495404)
I’d imagine the main benefit of downpayments to be behavioral, since otherwise the borrower has no stake in the asset initially.
Re:The AI bubble is 17 times the size of the dot-com frenzy ...
by rtkwe on Monday October 06, 2025 @04:37PM
(#45496040)
I doubt that's the main driver for lenders and people are generally pretty attached to and excited about their new cars. They also do have a stake they'll still be out time and money even if insurance covered the entire cost of the vehicle.
Re:The AI bubble is 17 times the size of the dot-com frenzy ...
by lxgr on Tuesday October 07, 2025 @03:27AM
(#45500315)
I wasn’t really thinking about people wrecking their cars, but rather about making future payments.
Losing the use of a car and your equity in it to repossession is much worse than losing somebody else’s car alone.