Matt McGovern
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mattmcgovern.bsky.social
Matt McGovern
@mattmcgovern.bsky.social
780 followers 1.2K following 1.3K posts
I post a lot about climate and clean energy, and Wisconsin sports. Marathon runner, husband, dad, Village Trustee and attorney. Pro-democracy. Let’s build safer streets, more homes and a greener Shorewood. Personal account.
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"Using loans backed by their GPUs to purchase other GPUs."
We're in so much trouble.
prospect.org/2025/11/19/a...
A great paper from the Center for Public Enterprise lays out additional alarms. Data centers are not lasting infrastructure, or at least the guts inside them aren’t. If the GPUs are working overtime to compute AI models, they may not last more than two years, and high-end AI firms will always want to upgrade to the latest version anyway. (By the way, our friends at Blue Owl are lending money to Elon Musk’s xAI to buy Nvidia GPUs.) But AI firms are extending their depreciation schedules for the GPUs; they’re saying they will last much longer than they likely will. That means overstated revenues, as companies have to purchase far more GPUs than they are admitting publicly, and thence possible financial disaster. Indeed, some of the smaller companies are using loans backed by their GPUs to purchase other GPUs. It also means that these hulking buildings, and the dedicated power plants some of them are constructing in the vicinity, are likely to become stranded assets when the site outlives its usefulness.
November 19, 2025 at 2:38 PM