Financial engineering on steroids, or is it simply circular financing?

Investors are being lured to invest in loans secured against graphics processing units and backed by leases to Tech groups, and the Tech groups then shift debt off their balance sheets.

The loans are often engineered by special-purpose vehicles formed by tech companies and investment firms for the purpose of acquiring a cache of high-performing chips, which are then leased to the tech businesses to train their AI models. https://finance.yahoo.com/news/ai-arms-race-heats-startups-230146272.html #GPUs #Loans #Financing #AI #DataCenters #Financing #Leasing #FinancialEngineering #AITraiing #LLMs