Post #1361995
2026-03-30 21:05 UTC
A [pretty staid-sounding law firm warns that the AI industry is partying like it's 2007](https://www.quinnemanuel.com/the-firm/publications/client-alert-emerging-litigation-risks-in-financing-ai-data-centers-boom/):
> Lenders who originated data center loans [...] have begun pooling those loans and selling tranches to asset managers and pension funds, spreading risk well beyond the original lending institutions.
Also of note:
> The most basic litigation risk in AI infrastructure finance is that the revenues generated by the sector may prove insufficient to service the fixed obligations incurred to build it. The industry brought in approximately $60 billion in revenue in 2025 against roughly $400 billion in capital expenditure.
([Via](https://blacksky.community/profile/did:plc:thwktv5aeeab63stvlklc4ei/post/3mibsvgvx7k2c).)
Replies (1)
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@istewart@awful.systems 2026-03-31 15:48
Quinn Emanuel is among the biggest of big corporate law, with a substantial footprint in Silicon Valley. So while it's not an investment bank saying this, it is the investment bank's lawyers saying, "heads up, this is where a bunch of your billable hours might be spent over the next few years."