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The Data Center Rodeo is Really Ramping Up and Becoming More Financially Dangerous Similar to 2008.
It’s like the Bakkan Oil Fields but on a world wide scale. “Nvidia is also CoreWeave’s supplier of chips and one of its major investors, meaning CoreWeave is using Nvidia’s money to buy Nvidia’s chips and then renting them right back to Nvidia.”
The last time the economy saw so much wealth tied up in such obscure overlapping arrangements was just before the 2008 financial crisis. If the AI revolution fails to materialize on the scale or the timeline that the industry expects, the economic consequences could be very ugly indeed.
The extreme concentration of stock-market wealth in a handful of tech companies with deep financial links to one another could make an AI crash even more severe than the dot-com crash of the 2000s.
Perhaps that is the key difference between 2008 and 2025. Back then, the federal government was caught off guard by the crash; this time, it appears to be courting one.
