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Zeitgeist — a spike by Chris Gathercole
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The Subprime Data Center Crisis

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  • Draws a direct parallel between AI data center financing and the 2008 subprime mortgage crisis.
  • Explains how special purpose vehicles (SPVs) raise debt for AI infrastructure and slice obligations into CDO-like tranches dependent entirely on customer revenue.
  • Cites a Bloomberg estimate of $500B+ in AI data center debt, with at least $200B held by private credit firms.
  • Warns hyperscalers are hiding billions in off-balance-sheet obligations through these SPV structures, creating systemic risk if a customer like OpenAI can’t sustain payments.