The collateral itself is another problem. If AI demand has been even a bit overestimated, then the value of these assets could plummet far enough to wipe out many of the parties involved, even with RVGs in place. A February report from the ratings agency Moody’s flagged that hyperscalers—not OpenAI, but the public companies Amazon, Meta, Alphabet, Microsoft, and Oracle—have amassed more than $662 billion in off-balance-sheet commitments, more than all the debt on their balance sheets.

...

The words of JPMorgan CEO Jamie Dimon, delivered after the Tricolor and First Brands crises, have loomed large over Wall Street for the past eight months: “When you see one cockroach, there are probably more.”

Do not believe the hype, AI has yet to prove it is a real, profitable industry and I fear the consequences of so many people believing wild misinformation about AI being far more useful than it is.

also see https://frontline.thehindu.com/economy/ai-ipo-boom-market-valuation-risks/article71060298.ece