The biggest reality check yet for AI could be at hand as SpaceX drops its record size $75bn IPO, valuing the company at $1.75trn. The pillars of the AI buildout may soon be revealed, like a Dali painting, to end in clouds or an elephant in the room.
Amid the hype and tech bro posturing, SpaceX going public shines a light on how global finance is being led by a carefully constructed narrative, built upon circular storytelling whose resolution may turn out to be illusory — and indeed elusive.
AI credit risk once sat mainly on the balance sheets of banks and a few big tech companies, but is now spreading to all corners of the market — just as reality checks have started to stack up. As stakes get higher, so are the macro and micro challenges.
“US credit and private credit in particular are just offering potential losses to investors in an AI bust,” said Alberto Gallo, chief investment officer at Andromeda Capital. “It will be the continuation of a broken promise as they’ve achieved only single digit returns even while times are good, but inflation is rising so the extended credit cycle we’re living in will...
