The biggest risk AI poses to jobs might not be mass layoffs
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Behind several neocloud operators stand companies with trillion-dollar market capitalisations and exceptionally low financing costs. Consider the relationships → CoreWeave: NVIDIA holds approximately 10% of the equity and has committed to purchase unused capacity through 2032, worth up to $6.3 billion. → NScale, Lambda, Nebius and IREN: NVIDIA’s involvement includes equity investments and preferential commercial agreements. → IREN: Microsoft has signed a major contract, with 20% of its value prepaid. → NScale and Lambda: NVIDIA has provided backing for leases. → Hut 8 and TeraWulf: Google has provided lease-related guarantees. → Cipher: Amazon has provided lease guarantees. These arrangements matter. But equity ownership, customer prepayments, capacity commitments and lease guarantees offer different levels of protection. Strategic backing does not eliminate default risk. Equally, a widening credit spread alone does not establish that default is inevitable. Source: Boring_Business on X @BoringBiz_
Source: Kalshi

