AI Has A Hidden Debt Problem

AI companies have accumulated significant hidden debt, according to a discussion between Ed Elson and Ed Zitron, author of the Where's Your Ed At newsletter and host of the Better Offline podcast. The conversation explores how these firms keep debt off their balance sheets. Separately, Karim Bousta, co-founder and managing partner at DVx Ventures and former vice president at Tesla and Lyft, analyzes Tesla's earnings and ongoing profit struggles, while Scott Devitt, senior research analyst at Rosenblatt Securities, reviews Google's earnings and expresses concern over its negative free cash flow.

Ed Elson is joined by Ed Zitron to explore why AI companies have racked up so much debt and how they are able to keep it off their balance sheets. Then, Karim Bousta joins to give his takeaways from Tesla’s earnings and explain why the company is still struggling with its profits. Finally, Scott Devitt returns to break down Google’s earnings and whether or not he’s concerned about the company’s negative free cash flow. Ed Zitron is the author of the Where’s Your Ed At newsletter and Host of the Better Offline podcast. Scott Devitt is a Senior Research Analyst at Rosenblatt Securities. Karim Bousta is the Co-Founder and Managing Partner at DVx Ventures and former Vice President at both Tesla and Lyft. Looking for the full version? Become a Prof G+ subscriber for unlimited, ad-free access to all our videos, including exclusive content only available on Substack.