Meta beat on earnings and lost $160 billion in two days, because $33.9 billion of capex just pushed its free cash flow negative for the first time since 2012.
Google’s long-term debt has gone from $10.9 billion to $98 billion in under two years, Nvidia’s own bonds are trading at 86 cents on the dollar, and CoreWeave is paying a 16.7% yield.
The AI build-out now needs around $3 trillion a year of new revenue to pay for itself – 30 times what the AI labs make today – and the bond market has already done the maths.
Elon Musk just issued an extraordinary warning about the AI boom. Then Meta went to the stock market with a plan to raise roughly **$98 billion**, one of the largest equity-financing programs in history, to keep funding its AI expansion. And now we’ve learned that banks nearly backed away from a $63 billion financing package for Anthropic’s Broadcom chips and networking equipment.
Got a news tip or correction? Let us know
If you got something out of this, please chip in to keep this site running, or subscribe to go ad-free.
5 views