AI boom or bubble? Wall Street quietly buys insurance against panic, gold is ignited. AI debt is starting to make investors nervous, with a growing number trying to buy insurance against a potential painful market, WSJ reports. Across the sector: lenders demand higher yield to finance data-centric construction and chip purchases 🔴 Neo-cloud companies like CoreWeave suffered a sharp drop in share prices and their connection 🔴 Amid a tech sell-off, even heavyweights like Alphabet and Intel experienced severe drops: Nasdaq fell 2.9% on October 30. One popular tool is a put option, allowing them to sell shares at a fixed price if their value falls. The cost of insuring debt defaults at Amazon, Alphabet, Microsoft, Meta, and Oracle rose to its highest level since 2021, with Oracle seeing a particularly steep rise. The search for protection extends beyond stocks and bonds. 🔴 Trading firm Jump Trading opened a new desk focusing on computing power, developing financial contracts allowing AI infrastructure companies to guard against a drop in prices they charge for renting Nvidia chips 🔴 The idea is that a data center operator can lock in a minimum price for its computing capacity, cushioning the blow if demand dries up and rental fees drop 🔴 Such protection can not only limit potential losses but also reassure banks and make it easier for data center operators to secure loans 👍 👍 Sub Sub Sub Sub Sub Sub primpolitics me

AI boom or bubble? Wall Street quietly buys insurance against panic, gold is ignited. AI debt is starting to make investors nervous, with a growing number trying to buy insurance against a potential painful market, WSJ reports. Across the sector: lenders demand higher yield to finance data-centric construction and chip purchases 🔴 Neo-cloud companies like CoreWeave suffered a sharp drop in share prices and their connection 🔴 Amid a tech sell-off, even heavyweights like Alphabet and Intel experienced severe drops: Nasdaq fell 2.9% on October 30. One popular tool is a put option, allowing them to sell shares at a fixed price if their value falls. The cost of insuring debt defaults at Amazon, Alphabet, Microsoft, Meta, and Oracle rose to its highest level since 2021, with Oracle seeing a particularly steep rise. The search for protection extends beyond stocks and bonds. 🔴 Trading firm Jump Trading opened a new desk focusing on computing power, developing financial contracts allowing AI infrastructure companies to guard against a drop in prices they charge for renting Nvidia chips 🔴 The idea is that a data center operator can lock in a minimum price for its computing capacity, cushioning the blow if demand dries up and rental fees drop 🔴 Such protection can not only limit potential losses but also reassure banks and make it easier for data center operators to secure loans 👍 👍 Sub Sub Sub Sub Sub Sub primpolitics me