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29 points madaxe_again | 1 comments | | HN request time: 0.215s | source
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smj-edison ◴[] 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. techblueberry ◴[] No.45784770[source]
I thought I’ve been reading that more and more of the money financing the AI boom is debt. The numbers are big enough I’d expect Powell to know:

https://techstartups.com/2025/10/31/the-hidden-debt-behind-t...

https://www.bloomberg.com/news/newsletters/2025-10-06/big-de...

I think there’s any way we don’t see contagion. There’s too much money involved.