Paul Kedrosky

Lily Jamali, a BBC technology reporter, and Paul Kedrosky, a partner at SK Ventures, dive deep into the dynamics at play in the AI industry. Lily explains how the rapid escalation of AI investments creates a bubble, fueled by hype and massive valuations. She highlights concerns about market concentration and the potential for significant financial losses if it bursts. Paul adds a layer, discussing excessive capital spending on infrastructure that raises systemic risks. Together, they explore AI's impact on the economy and the long-term ramifications of an eventual bubble burst.

In this discussion, Paul Kedrosky, a venture capital partner at SK Ventures and a research fellow at MIT, dives into the precarious state of AI financing. He highlights the alarming shift from cash-flow funding to private credit, which skews risk assessments. Paul explains how vendor financing and circular cash flows mask real financial exposure. He also addresses the fears stemming from potential government backstops and outlines why the current AI boom echoes past financial crises. His insights suggest that the implications of a bubble burst could severely ripple through the economy.

Jessica Lessin, Editor-in-Chief of The Information, dives into the major AI moves from Microsoft and NVIDIA, revealing a new partnership with Anthropic and discussing Jeff Bezos's AI startup, Prometheus. Erin Woo provides insights on Google’s Gemini 3.0, touching on its integration across platforms and user feedback. Catherine Perloff highlights Pinterest's cautious approach to generative AI and its impact on user experience. Lastly, Paul Kedrosky discusses the growing corporate debt in AI capital expenditure and the macro risks involved.