nixCraft 🐧Mar 7

You know how a gambler who loses it all starts begging his family for cash or putting their house up for a loan? We all know that story usually has a "happy" ending. Right?

Well, SoftBank is basically doing the same thing. They are talking to banks to get a massive $40 billion loan just to buy a stake in OpenAI. It is their biggest loan ever. I’m sure betting the house on a single hand will work out perfectly this time. https://www.livemint.com/companies/news/softbank-seeks-record-40-billion-loan-financing-banks-fund-openai-stake-invest-masayoshi-son-ai-bubble-concern-liquidity-11772773618772.html

These AI people are running out of money

$40 billion loan: SoftBank seeks record financing to fund OpenAI investment — Here's what we know

SoftBank is in talks with lenders for a record $40 billion loan to finance its OpenAI stake purchase — its largest dollar-denominated borrowing yet. Here's what we know amid liquidity and AI concerns.

mint
Show threadnixCraft 🐧Mar 7

Meanwhile BlackRock the biggest fund manager in world, started fund limits withdrawals as redemptions rattle private credit. Can you guess industry names that are using private credit (hint AI startups) ? https://www.reuters.com/business/blackrock-limits-withdrawals-private-credit-fund-redemptions-mount-2026-03-06/

Blackrock said on Friday it has limited withdrawals from a flagship debt fund ​after a surge in redemption requests, as investor worries mount around the $2 trillion private credit industry that giving loans to AI and software industry mostly.

Show threadnixCraft 🐧Mar 7
Over the past few weeks, several US banks have pulled off from lending to Oracle for expanding its AI data centres, as per a report. So Oracle is now firing 30000 engineers as banks pull out from financing AI data centres and OpenAI deals to meet fools dream. Wise investors are pulling out of data centres now as they found out it's impossible to reach AGI & exponential AI growth through increasing the scale of compute. LLMs have already hit their developmental plateau https://www.livemint.com/companies/news/oracle-layoffs-tech-giant-to-slash-30-000-jobs-as-banks-pull-out-from-financing-ai-data-centres-11769996619410.html
Oracle Layoffs: Tech giant to slash 30,000 jobs as banks pull out from financing AI data centres

Over the past few weeks, several US banks have pulled off from lending to Oracle for expanding its AI data centres, as per a report.

mint
Show thread🌸 Vårgubben

@nixCraft Is the madness finally comming to an end? How I’ve been longing to this day.

I hope those 30k engineers can now find something with meaning and purpose to put their cognition and skill into. Preferably something related to saving the planet from impending doom. That, or cool video games.

Also, should we be warning the genetics and/or robotics folk that tech bros are coming for them next?

Mar 7 at 9:19pmWeb
Show threadAntonio PatriarcaMar 8
@jordgubben @nixCraft It still looks like madness to me. Banks has been cautious for some time now as they already invested a lot and the companies do not seem closer to give the money back (with maybe the exception of Nvidia) and continue to ask for more. Banks are not as irrational as the stock market. And this layoff will apparently only give Oracle a 10 billion cash flow when they needed 150+ billion. I don't see how this help achieve their goal. It surely doesn't help convince banks and the cash flow is still much lower than needed for the planned expansion. And they are laying off the people who may help develop their products. But I suppose big tech is now convinced they can survive by using AI to build everything.
Show thread🌸 VårgubbenMar 8

@antopatriarca Was there ever an (actually achievable) goal in the first place? Or was it always ’cool toys’ spinning out of cost control?

If in the end the eventual burst of this bubble takea a few tech giant things down with it, then perhaps that’s the best outcome we can hope for.

Going to hurt a bit while all who’d made themself dependent on products and services no longer maintained migrate to smaller (and hopefully open source) options though.

@nixCraft

Show threadAntonio PatriarcaMar 8
@jordgubben @nixCraft With goal here I simply mean building the data center. But I certainly agree with you this is just speculation and trying to get as much money out of the bubble as possible before it eventually blows up