‘Things Are Going to Get Crazier’: AI Debt Deluge Recalls 2007 Risks
About this episode
The episode discusses the risks associated with massive borrowing by AI companies and its potential to create a technology-sector bubble reminiscent of 2007.
Massive borrowing by artificial intelligence companies — some of it to fund their own customers — risks inflating a technology-sector bubble, according to Seaport Research Partners. “Things are going to get crazier,” Jay Goldberg, the firm’s senior analyst for semiconductors and electronics, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Robert Schiffman in the latest Credit Edge podcast. “All this debt is coming on stream, it’s going to amp up things even further — this feels to me like 2007,” Goldberg says. “There are certainly corners of the industry that are prone to blow ups.” They also discuss AI vigilantes, concentration risk and growing anxiety about circular financing. See omnystudio.com/listener for privacy information.
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