> The financing for datacenters is also very shady and its own can of worms
Could you expand on that?
I don't think it's necessarily shady, but let's say that we're assisting at bets and capex spending we've never seen in history.
Companies like Meta, Alphabet, etc that were drowning in cash flow and buying back their stock are now back at issuing shares, creating a huge number of SPVs, issuing debt, etc.
There's a gigantic spending spirale with no signs of ending. Nvidia is financing companies to buy its own hardware.
Mind you, this is nothing new in some businesses. Airbus and Boeing have been lending money to companies to buy their own airplanes forever.
But its just all too much, with very little money coming. To understand how massive is the spending: even if every adult on the planet spent 250$ on AI per year this would still not cover anywhere near what's being invested.
I don't necessarily know what the parent was referring to, but I can see two this:
Megacorps often get significant tax breaks to build AI in a community.
Megacorps advertise that datacenters will create jobs but don't mention that most of those jobs will disappear once construction is finished.