Posted on 02/08/2026 3:09:52 PM PST by fireman15
"The market has indicated this is not investment-grade debt."
It’s 2026, and tech companies continue to insist they need to spend staggering amounts of money on AI data centers. Yet for all of its enthusiasm over the past few years, Wall Street is finally starting to squint at the numbers.
According to new reporting by Business Insider, JPMorgan Chase is running into trouble finding investors interested in servicing billions in debt backing two of the first five Stargate data centers.
Stargate is Donald Trump’s $500 billion AI project led by tech companies Oracle and OpenAI. Its vague goal, OpenAI has explained, is to “secure American leadership in AI,” which will somehow “support the re-industrialization of the United States” and “provide a strategic capability to protect the national security of America and its allies.”
But if JPMorgan — which led financial lenders through a $38 billion Stargate debt raise — is already struggling to sell the vision, that all might be easier said than done. Per BI, a person familiar with both data centers said they’re fully financed, though noted that banks and other investors are growing jittery about pouring even more money into the megaproject.
(Excerpt) Read more at futurism.com ...
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China is of course devoting massive amounts of money and resources for AI development and President Trump and others have seen this as a race for world dominance. The massive amount of money being spent which is quickly reaching unimaginable levels is starting to be seen as a very questionable investment.
Trump is no stranger to having a debt load greater than the investments ability to pay.
AI is the most powerful technology on the planet
AI is has been working behind the scenes for quite some time for the most lucrative applications and it’s already changing the way we do things
The rate of development change in AI tech is staggering and it’s going to get very real by 2030
Prepare for your cyber-Christ
This is a case where it is better to be the “second mouse” than the “early bird”.
No one ever claimed Trump was a fiscal conservative.
No one knows the what the long term reality of A.I. Will be. The short term though could be argued that A.I. is soaking up capital that could have been invested in starting to returning manufacturing and jobs to America. The MAGA promise to main street. Jobs that bring confidence to the economy that translates to GOP success in the midterms. Success needed to keep MAGA alive.
It’s still in the ‘collect underpants’ phase.
“AI” for my work is a faster, better search engine.
As far as “making diagnosis 100% of the time” - it’s a lie, a big one.
The owners want AI + Nurse Practitioner to be a superior product - and it is, for coding, for billing, and for compliance with government regulations.
I have made my way in this world for the past 50 years making the diagnosis in complex or difficult cases. This work involves thinking outside the box and gpoing against the guidelines or the rules.
For that - AI is a joke. AI does what it is told to do. It doesn’t get tired, it always answers the question the same way, and it has browsed more content of the medical literature (which is wrong 50% of the time) than I ever could.
If I could figure out how to make money selling AI short, I would.
Stupid beginning to the title. First as to the author, per Futurism's malarkey:
"I grew up in Michigan, attending Central Michigan University as well as Ball State University, where I earned a master of music in orchestral conducting. I now live in Brooklyn, New York, where I read, cook, and occasionally critique music with my cat, Ziti. On weekends, you can find me hunched over a cold pint arguing politics with the other transplants."It is not "Trump's Huge AI Project," but a bunch of companies all around the world having bought the AI Kool-Aid. Most companies financed by venture capital will lose their invetsments, usually meaning other people's money.Source: Joe Wilkins Correspondent
Second, as to AI:
Google Gemini AI Stuck In Self-Loathing: ‘I Am A Disgrace To This Planet’Some Freepers have commented to me using their AI skills, and come up with statements like "60 percent true."Google's AI, Gemini, Is Literally Depressed: 'I Am A Failure'
Why Grok called itself ‘Mecha-Hitler’, then posted a racist image; X responds
Racism and AI: "Bias from the past leads to bias in the future"
Covert Racism in AI: How Language Models Are Reinforcing Outdated Stereotypes
The Grok chatbot spewed racist and antisemitic content : NPR
Is AI Fueling a New Wave of Misogyny and Harassment?
AI girlfriends, sex robots and sexism — Laura Bates on the new tech-driven misogyny
Ask yourself, what is "true" which is 49 percent not true?"
These LLMs are clever, fast and simply SSDD done more quickly.
I put various gen AI models through their paces interpreting Zechariah 14, Ezekiel 38-41, Daniel 11-12, Joel 3, Revelation 12, 17, 19
Couldn’t stop laughing at the crap they spewed out__
Thanks for that. Meanwhile, I was at an evensong service with lovely music and reflection on all.
If one thinks the magic phrase -- AI -- as generally "snake oil," then we see how enthralled to a myth many are. This is the new tulip mania of centuries ago.
Can computers run faster? More efficiently? Effectively? Yes. But true cognition? Nope.
LLMs are just silly Google searches with the speed to often amass errors very quickly.
My guess is that “The Beast” is going to be built. The bible tells me so.
AI = Advancements in Pattern Recognition
AI = Recognition of Changes in Those Advancements
AI = Discovering New Paths of Development in Those Changes
I thank you for your comments. I agree that this is not actually “Trump's Huge AI Project”, but he bought into the hype that he was fed by the tech giants and put the force of the Federal Government behind them.
We have many people here who have no clue at all about the scale of the current resources being devoted to AI Data Center construction. At the same time those of us who have devoted substantial time to actually using the AI tools that have been released to the public can attest that at this time they are useful for some purposes but do not and may never live up to the hype any time soon.
As far as the author's qualifications to write this article... no matter what they are the article seemed to sum up the situation and added supporting information that seemed relevant.
The links that you have provided and your comments about people who have used AI tools to respond to you would also seem to support this conclusion. The amount of funds and effort being devoted to AI are unprecedented and most likely will result in some sort of severe consequences with very little positive impact.
Stargate is more Biden era, tbh. It has a lot of renewables talk in its marketing. Matador is a bit more in Trump’s court...and it’s in serious trouble, I’m sorry to say.
The most likely ROI on the current investment is paltry. The payout and NPV are equally bad for all the hype. The business model is very notional and sketchy.
Build it and they will come may work for little baseball fields but is hardly the basis for billions of complex investment. They also are not going to make much on the consumer toy aspects. I can see the possible uses in research and services but one takes experienced users and the latter is not very pleasant for consumers.
AI is has been working behind the scenes for quite some time for the most lucrative applications and it's already changing the way we do things
I would be interested in the materials that have caused you to reach these conclusions. I have spent a considerable amount, of time money, and effort on hardware and leased virtual machines that run Large Language Models (LLMs) and other types of AI software. I have also spent a considerable amount on premium AI commercial services.
I am a hobbyist and enjoy looking into this area. In addition, my next-door neighbor is a software engineer who works for Amazon. He shares his perspective on AI developments frequently.
I do not regret the effort and money that I have put into AI projects... I shared this article because the more I learn about the limitations, the more I realize that the hype has convinced people with no experience actually working with AI that what is coming is not likely to be even close to what is being promised. These are tools that will and already have resulted in changes in the way that business is done. But the predictions are more in the realm of fantasy than reality.
So far AI seems mostly consensus driven and includes all that is wrong in the consensus.
It is good enough for clues and a coarse comb.
When it comes down to either opinion or best practice it is indeterminate.
Nothing beats reasoned and knowledge backed experience, gut feel and gestault.
I claim not to be a Luddite but I am very cautious and skeptical of black boxes created by anyone.
Good. These data centers are destructive to habitat, and they will not improve our lives one iota.
When affordable pocket calculators came out in the 1970’s it was hailed as a great achievement because now anyone, without formal training or exceptional computational skills could make mistakes accurate to the eleventh decimal place.
Moral: all these things are tools and as intelligent or otherwise as the people who use them.
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