Mastodawn

> The interaction between the two collateral layers creates a cascading risk. If GPU collateral loses value, the neocloud tenant cannot service its debt, which impairs the tenant’s ability to make lease payments to the data center SPV, which in turn undermines the cash flows backing the data center ABS that investors are relying on.

and

> ...if it materializes at scale, would propagate losses across every layer of the financing stack.

Oh joy.

your auntifa liza 🇵🇷 🦛 🦦21m ago

RE: https://toot.cafe/@baldur/116330293486023818

“asset-backed securities”

WHAT ASSETS?

OpenAI’s value is speculation of what their software is worth. they don't have billions in manufacturing plants or machines. they don't even have billions in data centers.

if the assets are from companies with valuations based on promisory notes that speculate how much money they could make in a fairy tale future, 2008 is going to look like rookie mistakes.

the AI bubble is built on ABS & CMBS bundling and tranching money that never existed.

your auntifa liza 🇵🇷 🦛 🦦56m ago

Show thread

Baldur Bjarnason 59m ago

https://www.quinnemanuel.com/the-firm/publications/client-alert-emerging-litigation-risks-in-financing-ai-data-centers-boom/

> In a role reversal, this year Moody’s has warned that AI data center investments may be riskier than they appear, as current U.S. accounting rules allow companies to conceal tens of billions in potential liabilities. Moody’s noted that reported liabilities may understate likely cash outflows

No worries there, right?

Client Alert: Emerging Litigation Risks in Financing AI Data Centers Boom

Quinnemanuel

your auntifa liza 🇵🇷 🦛 🦦56m ago

Show thread

Baldur Bjarnason 1h ago

https://www.quinnemanuel.com/the-firm/publications/client-alert-emerging-litigation-risks-in-financing-ai-data-centers-boom/

> Data center debt has increasingly been repackaged and sold to a wider pool of investors through asset-backed securities (“ABS”) and commercial mortgage-backed securities (“CMBS”).

This has never backfired, right?

Client Alert: Emerging Litigation Risks in Financing AI Data Centers Boom

Quinnemanuel

your auntifa liza 🇵🇷 🦛 🦦56m ago

Baldur Bjarnason 1h ago

This law firm memo provides a fairly detailed overview of the risks inherent in the "AI" finance bubble and it doesn't look good

https://www.quinnemanuel.com/the-firm/publications/client-alert-emerging-litigation-risks-in-financing-ai-data-centers-boom/

> The deeply interconnected AI ecosystem means that distress at any single node—a construction delay, a tenant default, unhedged energy cost differentials, a collapse in GPU resale values—can propagate across multiple counterparties and financing layers.

This is fine, right?

Client Alert: Emerging Litigation Risks in Financing AI Data Centers Boom

Quinnemanuel

your auntifa liza 🇵🇷 🦛 🦦57m ago

rainey 🌻1h ago

RE: https://meow.social/@netkitty/116323821772254213

This is the kind of April Foolery more people should engage in. 100% amuse, 0% abuse. Just clean, wholesome fun.

your auntifa liza 🇵🇷 🦛 🦦1h ago

tante 2h ago

"The experience of workslop directly erodes social connection, erodes trust in one another and in the end erodes solidarity. Because why would you stand with a person who does not do their job and offloads their work on you?"

(Original title: Dissolving the social)

https://tante.cc/2026/04/01/dissolving-the-social/

Dissolving the social

“AI” exists to disenfranchise labor. That’s what it’s for. Regardless of how good these stochastic systems are or the flaws they have just being able to point at the non-unionized robot whenever the employees ask for raises or anything really is incredibly valuable for business. The existence of “AI” and the supporting narrative mean that […]

Smashing Frames

your auntifa liza 🇵🇷 🦛 🦦1h ago