Bilingual

AI Can Steal Your Bank Account in Hours
16 days ago
- AI is amplifying cyber threats in the financial sector, exploiting concentrated infrastructure and data breaches.
- Fraud is industrializing via AI, with deepfakes and phishing targeting individuals, especially young investors.
- Resilience and real-time monitoring using AI are key defenses, along with sector collaboration and training.
Even banks and hyperscalers are now sounding the alarm about the AI bubble
15 days ago
- Bank for International Settlements warns of AI bubble pop risking global economy
- Oracle's stock dropped 40% in a month, exposed to AI bubble risks
- Hyperscalers like Amazon, Microsoft, Google, Meta invest billions with uncertain returns
- Risk extends to suppliers, construction firms, and small businesses
- Enterprises seek control, open-source models, and predictable pricing over frontier AI
- Oracle's SEC filing highlights dependency on OpenAI's uncertain payments and capacity risks
- Challenges include data center permitting, power sourcing, and political opposition
- AI companies may raise prices, but market tolerance is limited
- Shift towards using AI models less and optimizing costs signals bubble strain
S&P downgrades Oracle to BBB – only one notch above junk level
7 days ago
- S&P downgraded Oracle's rating to BBB- due to massive AI investments, placing it one notch above junk status.
- The downgrade is driven by Oracle's AI infrastructure expansion, leading to a forecasted $42 billion cash flow deficit and increased debt.
- S&P highlights Oracle's high dependency on OpenAI as a central credit risk, with half of promised service volume tied to this single customer.
- Oracle is transitioning to a cloud infrastructure business, expected to reach 60% of revenue by 2028, but faces weaker financial flexibility compared to rivals.
- The company has cut over 21,000 jobs to fund AI investments, amid broader regulatory warnings about debt-financed AI risks resembling past financial crises.
Five tech giants are hiding $1.6T in AI debt, using the trick that toppled Enron
9 hours ago
- Alphabet, Microsoft, Amazon, Meta, and Oracle have $1.35 trillion in reported debt, but a Nikkei study reveals an additional $1.65 trillion in off-balance-sheet debt, up eightfold in four years.
- The hidden debt uses off-balance-sheet vehicles similar to Enron's, but is now legal due to tighter rules and fuller disclosures, though it echoes Enron's structure.
- Companies package debt for chips, servers, and power into separate legal entities like joint ventures to avoid recording it on their own accounts, e.g., Meta's Hyperion data centre structure with $27 billion debt.
- Examples include Oracle's $260 billion in future lease commitments, Nvidia's $119 billion in purchase obligations, and Alphabet and Microsoft also keeping vehicles off-book.
- The industry is expected to spend over $3 trillion through 2028 on AI data centres, with much financed against chips, but the hidden debt could trigger losses if AI demand fails.
- Off-balance-sheet debts become real when data centres go live, potentially leading to credit rating downgrades (e.g., Oracle's S&P cut) and flagged risks from Moody's and Morgan Stanley.
- The disclosures exist in financial footnotes, but investors see less than half the actual leverage, making it a quiet risk amid bubble talk.

Hasty Briefsbeta

#financial risk

AI Can Steal Your Bank Account in Hours

Even banks and hyperscalers are now sounding the alarm about the AI bubble

S&P downgrades Oracle to BBB – only one notch above junk level

Five tech giants are hiding $1.6T in AI debt, using the trick that toppled Enron