Source: Newcomer
Leopold Aschenbrenner's sale of public positions—despite his bullish long-term thesis on AI—suggests even true believers face margin calls and liquidity constraints in a massively leveraged bet on compute. The move exposes the mechanics behind AI's valuation spiral: companies and funds are borrowing heavily against future AI returns, and forced selling cascades when sentiment shifts or volatility spikes. Nvidia's vendor financing lets customers buy chips on credit, which props up demand while transferring default risk downstream. When leverage unwinds, the entire stack becomes fragile.