Post #3420119
2026-06-24 16:41 UTC
@gabrielesvelto@mas.to But they are effectively acting like startups in the AI space, and they are if anything taking far less risk than genuine startups would, since they have massive revenue from other sources, and plenty of collateral and liquid shares, so they're not really at risk of running out of cash.
Replies (1)
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@gabrielesvelto@mas.to 2026-06-24 16:50
@vidar@m.galaxybound.com Amazon long-term debt tripled in 24 months, Google's went up 7 times IIRC, Oracle has an absolutely bonkers >3.5x debt-to-equity ratio. Microsoft doesn't look as bad on paper, but Microsoft has a stake in OpenAI so there's that. And then there's the SPVs. There's been several SPV that have been stood up to hold debt so I don't think anybody knows exactly how much debt has been accumulated. The combination of zero cash flow and a lot of debt is rather explosive.