Hey big hyperspender.
Photographer: Bloomberg
For anyone worried about the gargantuan costs of developing artificial-intelligence infrastructure, it was comforting to think that Big Tech firms could just turn off the spending taps if demand for chatbots and coding tools didn’t pan out. That’s starting to look like wishful thinking.
The hyperscalers that operate data centers, and chipmakers such as Nvidia Corp., are having to sign hugely expensive long-term contracts to secure computer memory as well as to rent and power the vast buildings that house AI kit. Some are using their heft to provide financial backstops in case less well-capitalized customers can’t pay their bills.