Syz the moment

Why? Because the "growth at all costs" era of AI is meeting a harsh new reality: Debt. The Breakdown: 🚀 The Ambition: Oracle is trying to build a $300B infrastructure bridge for OpenAI. 💸 The Debt: Oracle’s net debt has ballooned from $78B to $105B in just one year. Forecasts show it hitting $290B by 2028. 🛑 The Pivot: Lenders are getting nervous. They are demanding stricter terms, higher rates, and more collateral. The Lesson for Leaders: Even the giants aren't immune to market sentiment. Blue Owl—the pioneer of these massive sale-leaseback deals—decided the risk no longer matched the reward. While Oracle says they are moving forward with a new (unnamed) partner, the message from Wall Street is clear: The blank check for AI infrastructure is being cancelled. Investors are no longer just asking "How fast can you build?" They are asking "How are you going to pay for it?" We are moving from the Hype Phase of AI into the Sustainability Phase. Only those with the strongest balance sheets will survive the transition. Oracle $ORC stock is down -5% on the news!

Source: zerohedge

Japan's 10-year government bond yield has risen roughly 1.5 percentage points since the beginning of 2023, reaching 1.98%, the highest level since the 1990s. During this same period, gold and silver prices have skyrocketed by 135% and 175%, respectively. Are precious metals being used as a primary hedge against the rising cost of government debt? Source: Global Markets Investor

Nobody knows when the real consequences will materialize, but after a prolonged period of extremely low rates, this continued shift will likely drain liquidity from markets, potentially causing a ripple effect through margin calls and other forced deleveraging. Rates will probably rise to 0.75%, which is still low by global standards. However, what matters most here is the rate of change, rather than the absolute level of rates. Higher Japanese rates = stronger yen → yen carry trade unwinds → investors sell foreign assets (U.S. Treasuries) → upward pressure on U.S. yields → global liquidity contracts Will it happen? Or is it already priced by the market? Source: Guillaume Tavares, Bitcoin Archive

📉 Going back 60 years, the smallest drawdown has been 7.4% while the largest was 41.8% 🤯 After the midterms, all is well, but before? 🤔👀 Source: Barchart

Coreweave in blue Oracle in red Source: www.zerohedge.com

The chart from Epoch.ai GPU clusters reveals a 16x surge in Data center power demand. With 94% of infrastructure not yet built and power constraint ahead, hyperscalers and start-up race to control the future of AI. The US might lose the race to AI not because of the access to talents or capital but because of a lack of power capacity. Source: Markets & Mayhem

Source: Barchart