This is a long, detailed read, and an important one for forecasting when the tsunamis are coming. He details the parallels between the money flow before the 2008 crash, and the money flow into AI.

“The parallel to 2006 is exact and it explains the single most-cited absurdity of this cycle: How does OpenAI, a company with some $40 billion of run-rate revenue, sign $1.4 trillion of compute commitments? The same way a household with $60,000 of income signed a $600,000 mortgage: because the terms at signing do not require the payment yet, and because everyone at the table - borrower, lender, and the market - believes the growth will arrive before the payment does.”

#ai #markets #forecasts #crash https://www.groundbrkr.com/p/the-teaser-period-why-the-ai-boom