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387 points reaperducer | 1 comments | | HN request time: 0.217s | source
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Flockster ◴[] No.45771921[source]
Okay, that article is a little bit shallow. I just summarises the headlines of the last weeks of circular deals. But is there also a more in depth article that sheds a little more light onto what this actually means? From a financial perspective?
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Spooky23 ◴[] No.45772043[source]
It’s probably hard to do that in a news context because the real rationales are pretty tight.

Depending on your POV OpenAI and the surrounding AI hype machine is at the extremes either the dawn of a new era, or a metastasized financial cancer that’s going to implode the economy. Reality lies in the middle, and nobody really knows how the story is going to end.

In my personal opinion, “financial innovation” (see: the weird opaque deals funding the frantic data center construction) and bullshit like these circular deals driving speculation is a story we’ve seen time and time again, and it generally ends the same way.

An organization that I’m familiar with is betting on the latter - putting off a $200M data center replacement, figuring they’ll acquire one or two in 2-3 years for $0.20 on the dollar when the PE/private debt market implodes.

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afavour ◴[] No.45772716[source]
> Depending on your POV OpenAI and the surrounding AI hype machine is at the extremes either the dawn of a new era

Eh, in a way they're not mutually exclusive. Look back at the dot com crash: it was all about things like online shopping, which we absolutely take for granted and use every day in 2025. Same for the video game crash in the 80s. They are both an overhyped bubble and and the dawn of a new era.

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1. Spooky23 ◴[] No.45775308[source]
Exactly. I think the difference is that we've developed a cadre of people are think 24x7 about capturing value in a way that makes dotcom era moguls look naive.

AI is a powerful and compelling technology, full stop. The sausage making process where the entire financial economy is pivoting around it is a different matter, and can only end in disaster.