A lot of folks talking the LLM side, but it’s also worth mentioning that these are real estate deals, and that real estate gives banks and corporations the power to conjure money. The money loaned in a mortgage by and large doesn’t exist before the mortgage is written, so by trading assumed future revenues for real estate deals today, corporations can pull forward profits from the future to the present. There are particular kinds of deals and speculation taking place that real estate allows you that software does not, and the data center buildout looks kind of like the 2008 subprime mortgage crisis strictly from the real estate side, independent of what gets put in the data center.
A lot of folks talking the LLM side, but it’s also worth mentioning that these are real estate deals, and that real estate gives banks and corporations the power to conjure money. The money loaned in a mortgage by and large doesn’t exist before the mortgage is written, so by trading assumed future revenues for real estate deals today, corporations can pull forward profits from the future to the present. There are particular kinds of deals and speculation taking place that real estate allows you that software does not, and the data center buildout looks kind of like the 2008 subprime mortgage crisis strictly from the real estate side, independent of what gets put in the data center.