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Powell – unlike the dotcom boom, AI spending isn't a bubble

(fortune.com)
29 points madaxe_again | 5 comments | 01 Nov 25 18:40 UTC | HN request time: 0.684s | source
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smj-edison ◴[01 Nov 25 19:37 UTC] No.45784631[source]▶
> Powell’s framing echoes that view: The AI race, while frothy at times, is being financed mainly through corporate cash flow rather than speculative debt.

I think this is the most important line. Even if these companies are overvalued, I don't think there will be a nasty pop (this could change if banks start getting more involved, but so far it's been mainly company reserves and VC funding).

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1. sseagull ◴[01 Nov 25 19:52 UTC] No.45784749[source]▶
That’s starting to change though

https://www.bloomberg.com/news/articles/2025-10-31/meta-xai-...

(Archive link: https://archive.ph/NBNEu)

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2. smj-edison ◴[01 Nov 25 20:02 UTC] No.45784859[source]▶
Hmm, interesting. I hadn't realized how much companies were starting to borrow.
3. jameslk ◴[01 Nov 25 20:32 UTC] No.45785071[source]▶
Borrowing to fund AI datacenter spending: https://x.com/MikeZaccardi/status/1984036161426485358
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4. JKCalhoun ◴[01 Nov 25 20:46 UTC] No.45785186[source]▶
First paragraph for those unsure whether they want to prove that they are human (and for non-humans of course):

"Just this month, Meta Platforms Inc. has secured about $60 billion in capital to build data centers, part of its spending to get ahead in the artificial intelligence race. Half of that won’t show up on the social media giant’s balance sheet as debt.…"

5. ares623 ◴[02 Nov 25 07:07 UTC] No.45788398[source]▶
I feel proud that my 50 PRs are a part of that. Truly a worthy investment. Here's to the next 50 PRs.