The nervous ninnies called investors subject to very afflictions special to them such as “the jitters” are now experiencing it constantly. Many are pulling their money out of private credit funds like Blue Owl because of their and its “exposure” (that is. Lending) to businesses that are vulnerable to AI (artificial intelligence) disruption ( in effect displacement of) especially software companies.
As reported here over the last many months the AI Boom or Bust drama continues. One feature has been the move to “vertical integaration” (that is the desire to control all stages of a production process) as in tech oligarchs investing in nuclear power plants to power their “data centres”. Another was a reported awareness of a shortage of memory and storage “chips”. To this end oligarch Elon Musk announced TeraFab, a joint venture between Tesla and SpaceX, to construct the world’s largest computer chip facility. estimated to cost at least $20 billion, and aiming to produce 50 times the current annual global output of AI chips the price of which had risen sharply due to perceived shortages/ However at the end of March Memory chip stocks likeSK Hynix and Samsung continued their declinre after Google published research on a new algorithm that could allow more efficient use of the storage needed for artificial intelligence development.
Elsewhere oligarchs from around the world remain AI-profit enthusiasts. Indian fingers-in-every-pie oligarch, Gautam Adani is in talks with American technology giants like Meta and busy-busy Google for partnerships in his fast-expanding data centre business, a $100 bn plan by Adani, seeking to position his port-to-power group as the supplier of both the land and renewable energy needed for hyperscale facilities.