Brutkey

AA
@AAKL@infosec.exchange

@mttaggart@infosec.exchange Did you see this about the costs? https://247wallst.com/investing/2025/08/08/from-cash-to-credit-amzn-meta-and-msft-face-1-trillion-in-new-ai-debt/

Taggart
@mttaggart@infosec.exchange

@AAKL@infosec.exchange I had not! Great breakdown.

Currently, this shift from FCF to debt financing is manageable but risky for AMZN, META, and MSFT. Their financial strength offers a cushion, and investors shouldn’t panic yet. However, the $1 trillion debt by 2028 demands a robust ROI to justify the gamble, especially with projections of exponentially greater capex over the decade to realize the hyperscalers’ AI vision.
Debt at this scale works differently than it does for individuals, as we learned in 2008. Creditors want some of their return back and are willing to negotiate. Also, it's hard to imagine the impact of these companies all losing investor confidence at roughly the same time. If the market all at once decides the AI emperor has no clothes, it would be almost an insta-recession.

But I'm not so sure that's how it'll go. They've rainmade it this far, after all.

AA
@AAKL@infosec.exchange

@mttaggart@infosec.exchange It's very good, and kinda scary because the weight might kill off smaller blocks in this chain. But the amount of money needed long-term is insane.