alt Hacker NewsIt’s all broadly backed by a bunch of IOUs issued by those with no clear path to come up with the cash to pay the bill when it comes due. Hence the rising prices of credit default swaps.
It’s all broadly backed by a bunch of IOUs issued by those with no clear path to come up with the cash to pay the bill when it comes due. Hence the rising prices of credit default swaps.
No it's de facto backed by this:
Operating income
Microsoft: $136 billion, Apple: $133 billion, Alphabet: $124 billion, Nvidia: $110 billion, Meta: $82 billion, Amazon: $76 billion
$658 billion in op income for just six companies, growing at 10%+ per year. Maybe $8.5-$9 trillion in op income over the next decade. They have nothing else to spend it on other than over-priced share buybacks or dividends, most are under realistic anti-trust restrictions and can't freely buy major competitors. AI is an open field and they have the capital to burn.
Without all that financial firepower in the background driving everything none of it happens.