alt Hacker NewsThe hits are coming closer.
Microslop CEO begging for AI $$$ because astronomical overprovisioning is becoming obvious, all big spenders frantically trying to hide CapEx from their books and hallucinate revenue projections like its Enron reloaded and Oracle is already getting sued by bondholders over AI spend [0].
It will be worse than the dot com bust.
0: https://www.reuters.com/sustainability/boards-policy-regulat...
Replies
It will be worse than the dot com bust.
>It will be worse than the dot com bust.
And whose fault is that?
> astronomical overprovisioning
???
Literally all the cloud providers have been reporting severe capacity crunches for the past few quarters -- to the tune of backlogs of triple-digit billions each. As a reminder, a backlog or "Remaining Performance Obligation" (RPO) is money their customers have committed to them but they could not realize because they didn't have enough capacity to serve their workloads. Which is why they are all committing to double-digit billions each in AI CapEx spend over the next few quarters.
And most of them (aside from Oracle, which is trying to borrow its way into this gold rush) are investing money from their double digit billions in profit (per quarter!) into this spend... money that they could have otherwise comfortably held on to for something more palatable to share-holders.
Revenue and return on investment is a valid concern to bring up in this whole GenAI shebang; demand is not.
To me CoreWeave is the one to watch. They have to actually bring all these promised datacenters online, operational, and profitable. They basically got a $2B bailout from Nividia a week or so ago but they're back to sinking.
https://ts2.tech/en/coreweave-stock-slips-as-class-action-no...