News for hackers. Stuff that matters.

A comment on I'm Not Convinced the AI Bubble Exists. Parent comment

Re:I'm Not Convinced the AI Bubble Exists by aprilthird2021 on Monday November 09, 2026 @04:14AM (#50423095)
Isn't that worse because you then get into neocloud companies like Coreweave and Nebius who have taken insane debt to build out data centers and if the demand sinks for those they'll go under
[ Parent | on HN ]
Re:I'm Not Convinced the AI Bubble Exists by p2detar on Monday November 09, 2026 @04:26AM (#50423184)
[delayed]
[ Parent | on HN ]
Re:I'm Not Convinced the AI Bubble Exists by geekgod382 on Monday November 09, 2026 @04:40AM (#50423289)
It gets worse. CoreWeave has more than $50 billion in debt. rising costs will make financing economically unfeasible. And a demand shock will push the company into bankruptcy. This will affect NVIDIA and others involved in this entire AI supply chain.
[ Parent | on HN ]
Re:I'm Not Convinced the AI Bubble Exists by qaq on Monday November 09, 2026 @11:27AM (#50427777)
CoreWeave defaulting vs say Alphabet or Meta or MS or Amazon is very different thing. According to Pachai right now they are severely compute constrained they have 2x the demand they can serve. So while CoreWeave bondholders might take a haircut one of the hyperscalars will likely gladly buy their assets.
[ Parent | on HN ]