How the #AIBubble may be like the 2008 GFC thanks to SPVs / CDOs
#GPU #CoreWeave #NVIDIA #StructuredFinance #Securitisation #CDO #DataCentres #PrivateCredit #GFC2 #DerivativesMarket #PensionFunds #SPV #ComputeFutures #TechDebt #WallStreet #FinancialEngineering #2008Redux
10k words, wrong thesis.
He's banging on about GPUs in boxes. The actual scandal is GPUs as financial instruments. CoreWeave has $30B in debt collateralised against physical chips in SPVs (Special Purpose Vehicle), depreciated over 6 years based on projected inference revenue that doesn't exist. NVIDIA sells the GPUs, then rents some back, and that rental income services the debt used to buy them.
Nobody knows what an H100 is worth in 2028. Billions of dollars of structured finance assumes the answer is "enough."
Not asbestos in the walls, Ed. CDOs. Read a balance sheet instead of Pluralistic for once.
Zitron found the right neighbourhood and broke into the wrong house.
#AIBubble #GPU #CoreWeave #NVIDIA #StructuredFinance #TechDebt #Securitisation #WheresYourEdAt
Wulfy—Speaker to the machines
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