This wouldn’t be a huge issue if they had the cash to pay for it. The problem is they don’t so these companies that once had great free cash flow are now down on their knees begging for cash.

In the higher interest rate environment we’re heading into this is a potential disaster. For the new players like Anthropic and their likely “junk” credit rating this is going to be incredibly painful. It’s basically like playing in a casino on margin. If it works, great. If not you are totally f!*ked.