Tom McKenzie

Then another bucket would be

Maybe some of the key large language models themselves, the open AIs and the anthropics that are losing money on an annual basis, even as they're seeing a lot of growth and revenues increase year on year, they're still not profitable.

So you can break it down into different categories in terms of the level of risk.

But even amongst the big publicly listed companies with those strong balance sheets, you have seen examples of them tapping the public markets and raising debt on the public markets.

And so far, that's been well received by the markets.

But how long?

Is that going to continue?

And to what extent is the leverage that now these companies are starting to tap into going to be acceptable to investors?

And again, I think you have to put a different framework over the different companies in terms of how you answer that question.

Then there's the circularity of the financing.

So OpenAI, for example, doing deals with NVIDIA.

And NVIDIA investing in OpenAI and in response to that, OpenAI committing to buying a certain number of chips from NVIDIA.

Those circular financing deals, as they've been described by some, have also caused some concern as all of these companies become increasingly enmeshed and intertwined in terms of their deals and their investments on what is a bet on the future and how the future evolves.