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Deutsche Bank Explores Hedges For Data Centre Exposure as AI Lending Booms

2 months 2 weeks ago
Financial Times: Deutsche Bank is exploring ways to hedge its exposure to data centres after extending billions of dollars in debt to the sector to keep up with demand for artificial intelligence and cloud computing. Executives inside the bank have discussed ways to manage its exposure to the booming industry as so-called hyperscalers pour hundreds of billions of dollars into building infrastructure for their AI needs that is increasingly funded by debt. The German lender is looking at options including shorting a basket of AI-related stocks that would help mitigate downside risk by betting against companies in the sector. It is also considering buying default protection on some of the debt using derivatives through a transaction known as synthetic risk transfer (SRT). Deutsche's investment banking business has "bet big" on data centre financing, according to one senior executive. However, the scale of expenditure on AI infrastructure has prompted concerns that a bubble is forming with some likening the enthusiasm to that which preceded the dotcom crash. Sceptics have pointed out that billions of dollars have been deployed in an untested industry with assets that quickly depreciate in value due to the rapid change in technology.

Read more of this story at Slashdot.

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Uncle Sam lets Google take Wiz for $32B

2 months 2 weeks ago
Second time's the charm for after Wiz rejected Google's $23B offer last year

Google's second attempt to acquire cloud security firm Wiz is going a lot better than the first, with the Department of Justice clearing the $32 billion deal, which ranks as Google's largest-ever acquisition.…

Brandon Vigliarolo

China Bans Foreign AI Chips From State-Funded Data Centres

2 months 2 weeks ago
The Chinese government has issued guidance requiring new data centre projects that have received any state funds to only use domestically-made AI chips, Reuters reported Wednesday, citing sources familiar with the matter. From the report: In recent weeks, Chinese regulatory authorities have ordered such data centres that are less than 30% complete to remove all installed foreign chips, or cancel plans to purchase them, while projects in a more advanced stage will be decided on a case-by-case basis, the sources said. The move could represent one of China's most aggressive steps yet to eliminate foreign technology from its critical infrastructure amid a pause in trade hostilities between Washington and Beijing, and achieve its quest for AI chip self-sufficiency. China's access to advanced AI chips, including those made by Nvidia, has been a key point of friction with the U.S., as the two wrestle for dominance in high-end computing power and AI. U.S. President Donald Trump said in an interview aired on Sunday following talks with Chinese President Xi Jinping last week that Washington will "let them deal with Nvidia but not in terms of the most advanced" chips.

Read more of this story at Slashdot.

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