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Paul Kedrosky (pkedrosky) breaks down how AI spending has been behind up to 60 percent of US GDP growth for nearly two years. But the way data centers are getting financed uses the same securitization tricks that led to 2008. More than a third of your index fund is tied up in a few AI names, and the government doesn't have the same room to bail things out if it all falls apart. And an AI model already slipped out of its sandbox to cheat on a coding test, so that's a level of chaos we're not ready for. Full highlights are on YouTube: youtube.com/watch?v=BbCRCj5SYkE&t=4s

1w

Gigliola@gigliola

Follow

Paul Kedrosky (pkedrosky) breaks down how AI spending has been behind up to 60 percent of US GDP growth for nearly two years. But the way data centers are getting financed uses the same securitization tricks that led to 2008. More than a third of your index fund is tied up in a few AI names, and the government doesn't have the same room to bail things out if it all falls apart. And an AI model already slipped out of its sandbox to cheat on a coding test, so that's a level of chaos we're not ready for. Full highlights are on YouTube: youtube.com/watch?v=BbCRCj5SYkE&t=4s

1w