The collateral itself is another problem. If AI demand has been even a bit overestimated, then the value of these assets could plummet far enough to wipe out many of the parties involved, even with RVGs in place. A February report from the ratings agency Moody’s flagged that hyperscalers—not OpenAI, but the public companies Amazon, Meta, Alphabet, Microsoft, and Oracle—have amassed more than $662 billion in off-balance-sheet commitments, more than all the debt on their balance sheets.

…

The words of JPMorgan CEO Jamie Dimon, delivered after the Tricolor and First Brands crises, have loomed large over Wall Street for the past eight months: “When you see one cockroach, there are probably more.”

Do not believe the hype, AI has yet to prove it is a real, profitable industry and I fear the consequences of so many people believing wild misinformation about AI being far more useful than it is.

also see https://frontline.thehindu.com/economy/ai-ipo-boom-market-valuation-risks/article71060298.ece