alt Hacker NewsWait... with hyper-scalers, we are talking about Google, Meta, Amazon, Microsoft, are we not?
And do these not all have established business models that are ridiculously profitable, and huge cash reserves?
How the heck are THEY vulnerable, and the "bare" frontier labs like Anthropic and OpenAI with no preexisting business models or profits, but equally ridiculous borrowing are supposedly not?
Replies
shiandow • today at 10:14 AM
I think it was implicitly assumed that one or more of those would fail. The main question is, who else?
I don't think they are talking about the ones you listed, but companies like CoreWeave.
Google, Meta, Amazon, MS have huge cash-producing businesses they can just fall back on. Of course the stocks will get hammered in the short term, but they are still sitting on cash volcanos.
Pure AI plays are what are most at risk. In the bad case, all the CoreWeave type companies have their assets acquired on the cheap by the existing big players. In the armageddon case, companies like Anthropic and OpenAI also end up in the discount bin.