Correct - there are no freebies here!

You can't really rip off bond-holders when you are not positive EBIT and EBITDA...

Correct hyperscalars are doing fine - as it stands.

The problem is OAI/Anthropic - but if OAI and Anthropic fail the whole thing comes apart. Goog, Meta etc will be fine as they had tremendous cash flow generating operations prior to datacenter offerings w.r.t LLMs.

If OpenAI and Anthropic somehow become insolvent to the point that they are unable to continue running inference on their existing trained models, their tens of billions of dollars of monthly revenue will need to go somewhere.

Its rated as junk.

And if default risk rises, yes the value of those bonds will get crushed. But Id argue the value of equity will be more so - since they are not A) positive EBIT B) EBITDA

Those two numbers are variables that compose measures of default risk.

Calm your panties down. Kroll != S&P.

Yes, and there must be a reason they went with Kroll instead of someone else. It is possibly a bad reason, and we should by default be skeptical and assume such with the little information we have, until proven otherwise.

Did you even read the twitter post?

This is not panic selling. This is someone who has done their own analysis and determined the situation does not look sustainable and it's time to get out.

This is also someone who any way try and prove they got out. Only claimed to.