"Add it all up, and time is not on the data center's side. The finance guru estimates that the "AI datacenters to be built in 2025 will suffer $40 billion of annual depreciation, while generating somewhere between $15 and $20 billion of revenue."
In other words, new data centers have a very tiny runway in which to achieve profits that currently remain way out of reach. By Kupperman's projections, a brand new data center will quickly become a Theseus' ship made up of some of the most expensive technology money can buy. If a new data center doesn't start raking in mountains of cash ASAP, the cost to maintain its aging parts will rapidly overtake the revenue it can bring in.
Given the current rate at which tech companies are spending money without much return — a long-term bet that AI will all but make human labor obsolete — Kupperman estimates that revenue would have to increase ten-fold just to break even. Anything's possible, of course, but it doesn't seem like a hot bet.
"I don’t see how there can ever be any return on investment given the current math," he wrote."
"All the Devils from 2008 Are Back at the Megabanks: Leverage, Off-Balance-Sheet Debt, Over $192 Trillion in Derivatives, Shaky Capital Levels": https://wallstreetonparade.com/2024/08/all-the-devils-from-2008-are-back-at-the-megabanks-leverage-off-balance-sheet-debt-over-192-trillion-in-derivatives-shaky-capital-levels/
#upcoming #bubble #finance #derivatives #financialBubble #financialCrisis #GoldmanSachs #JPMorganChase #CitiBank #JPMorgan #Citigroup #money #liquidity #megaBanks #banks #banking #USPol #Fed #USPolitics
"In aggregate, every share must be held by someone.
[…]
"Last week, our most reliable measure of stock market valuations hit the highest extreme in history. […] It was because people were willing to exchange record numbers of dollars for the privilege, hope, and excitement of getting shares of stock.
[…] It’s just a bubble."
John P. Hussman: https://www.hussmanfunds.com/comment/mc240721/
#investors #shares #stocks #upcoming #bubble #finance #equities #financialBubble #financialCrisis #investment #money #liquidity
#15yrsago #WillRogers talks to the bankers: keynote roast from 1924 https://ia904504.us.archive.org/24/items/WillRogersTalksToTheBankers/WILLROGERSTALKSTOTHEBANKERS_WillRogers_VICTOR_45374-A.mp3
#15yrsago Liar’s Poker: a timely moment to revisit 20-year-old memoir of the rise and fall of a #FinancialBubble https://memex.craphound.com/2008/10/03/liars-poker-a-timely-moment-to-revisit-20-year-old-memoir-of-the-rise-and-fall-of-a-financial-bubble/
#10yrsago Fortunately the Milk: Gaiman’s kid-novel is a tribute to fatherly trolling https://memex.craphound.com/2013/10/03/fortunately-the-milk-gaimans-kid-novel-is-a-tribute-to-fatherly-trolling/
#10yrsago Unsealed #Lavabit docs show that Feds demanded SSL keys https://www.wired.com/2013/10/lavabit-unsealed/
6/
BOCVIP
Liam O'Mara IV, PhD
Erik Jonker
Mike McCaffrey
doctorambient
Miguel Afonso Caetano
Simone
Eric Maugendre about carbon
Cory Doctorow