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Automatically translated version. May contain inaccuracies compared to the original.
The first alarm about artificial intelligence has already sounded. Almost nobody heard it.
Firmus Grid. AI, data centers, investors include Nvidia, Blackstone, Coatue, and Jane Street. Big plans and one of the largest IPOs in Australian history: up to 5,5 billion dollars at a valuation of about 30 billion.
The market said “no.” The offering was canceled.
The most interesting part is in the numbers. Less than three months ago the company was valued at 10,5 billion. For the IPO they were asking three times more. And the operational capacity didn't triple in that time. Back in 2019 Firmus was mining Bitcoin in Tasmania.
Investors asked a simple question: what are we paying for? And they didn't get an answer.
This is very telling. Investors are no longer driven by FOMO. They are no longer willing to buy any AI story at any price. The AI boom requires ever more capital, debt, electricity, and data centers, and money is getting more expensive. Now every flashy pitch is met with the same demand: show us the payback.
And now pay attention. According to the IMF, this sector is currently holding up the global economy. And on the most hyped story in that sector, big money said “too expensive.” This isn't just a warning bell. It's a bell for all the bells, like in the movie The Ring. If I recall, they gave seven days.
Everything around is on fire, growth is being propped up by AI, and investors in AI have begun to doubt. And on 3 November there are the U.S. midterm elections.
A bubble doesn't burst when people stop believing in it. It bursts when they stop paying for it.
What will happen after 3 November: a crash or a new surge? Your opinion.
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