Will 2026 Be The Year Of The AI Technology IPO?

 

Several large AI startups like Anthropic and OpenAI are preparing to do an Initial Public Offering, IPO in 2026, according to various media outlets. SpaceX is also reported to plan an IPO in 2026.

OpenAI has last raised money at 500 billion USDs and is reported trying to raise 100 billion USDs at 830 billion USDs valuation,currently, all while remaining private.  

Anthropic last raised 13 billion USDs at 183 billion USDs post money private market valuation. 

SpaceX is staging a second market share sale currently that could value SpaceX at 800 billion USD.

SpaceX, OpenAI and Anthropic could be huge IPOs if done in 2026. SpaceX and Open AI, especially could take the top 2 spots in the world historically for money raised from IPOs, ever.

Possible SpaceX, OpenAI and Anthropic could open the IPO floodgates and many more AI technology companies could go public, along with companies from other hot sectors like energy and other sectors.

This could result in hundreds of billions of USDs raised via IPOs. Hundreds of billions of IPOs raised via IPOs in the US, however, could strain the market and be precursor to a selloff and even and AI boom correction, according to Wolfteam Ltd.'s projections.

But barring an unforeseen deeply negative event, 2026 will be one of the best, highest volume IPOs years on record, according to Wolfteam Ltd.'s projections and estimates.

 

What To Expect Of The AI And Private Credit Boom In 2026?

 

Artificial intelligence, AI and private credit investing are the parts of the global economy that attracted the most capital in the last 5 years.

The investments in artificial intelligence, AI will most probably continue in frantic pace in 2026. Only Amazon, Microsoft, Alphabet and Meta plan to invest around 200 billion USDs in 2026 in AI data centers related investments. AI can, according to the forecasts of Wall Street investors and analysts and Silicon Valley investors and technologists and many company CEOs change profoundly how we work and enjoy leisure.

AI will need many more years to fully come to fruition, so in 2026 the AI investment boom will most likely continue, according Wolfteam Ltd.'s projections and estimates.

Private credit is another boom area of the global economy. Private credit funds have replaced banks in high yield lending at 7 % to 15 % rates to risky borrowers. Private credit funds have raised tens of billions of USDs in new assets in the last 5 year, which they plow in private credit. Large part of the private credit lending flows to small and medium technology enterprises further feeding the AI boom.

Since there is high demand for private credit type lending and the returns on private credit are often in double digits per year, the private credit boom will most likely continue in 2026, but a markedly slower pace, according to Wolfteam Ltd.'s projections and estimates.

  

 

Banks And Private Equity Investments

 

Banks are financing and investing in ever more private equity, private credit type investments since the beginning of 2025, according to regulatory filings and news articles.

Regulators have been loosening up bank regulations.

And the largest US banks like JPMorgan, Bank of America, Citigroup, Wells Fargo started writing cheques for billions, in some cases for tens of billions of USDs to finance leveraged buyouts and multi billion USD deals.

The leading banks with large investment banking operations Goldman Sachs and Morgan Stanley are putting up their own capital and capital from the assets they manage on behalf of clients and newly raised by them funds into private equity type deals more and more.

All this loads the financial, banking system with leverage, since private equity investments are in essence leveraged investments and so is in fact private credit high interest loans, which  JPMorgan, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley are giving out more and more.

The financial system is becoming riskier and more leveraged, according to Wolfteam Ltd.s projections and estimates. But for now regulators and the banking system itself seems to have things under control. 

What If AI Turns Out To Be A Bubble? The Effect On Private Equity Companies

 

According to many Wall Street investors, research analysts and Silicon Valley investors and technologists  artificial intelligence, AI is the fourth industrial revolution and artificial intelligence, AI will change profoundly how humanity works, consumes leisure and communicates.

In short, artificial intelligence, AI could makes us tremendously more productive, according to those forecasts.

However, if the current artificial intelligence, AI turns out to be a bubble, possibly the greatest financial bubble in history the hyperscalers Amazon, Microsoft, Alphabet and Meta will be disproportionately hurt. With them, however the market capitalization and value of small and medium sized artificial intelligence, AI technology companies will suffer. And not only AI companies, but almost all technology companies will loose value if artificial intelligence, AI turns out to be a bubble and bursts. More than 40 % of new technology investments go into artificial intelligence, AI companies. And since most other companies try to instill artificial intelligence, AI in their organizations, if AI bursts the technology sector and a large part of the global economy will be hurt.

Blackstone, KKR, Apollo, Carlyle, Ares, Blue Owl, CVC etc. and the other leading private equity, private credit, real estate and infrastructure asset management companies, along with small and mid-sized private equity managers have invested large part, in some cases more than 30 % of their newly raised assets under management in the artificial intelligence, AI boom, which means they have invested in artificial intelligence, AI companies, artificial intelligence, AI data centers, energy and infrastructure companies that provide the energy for the artificial intelligence, AI data centers. In short private equity, private credit, real estate asset management firms have financed to a large part the artificial intelligence, AI boom with hundreds of billions of USDs in artificial intelligence, AI related investments.

And if the current AI boom turns out to be a bubble, after artificial intelligence, AI technology companies and the energy companies supplying the artificial intelligence, AI data centers with energy, the next in line to loose hundreds of billions of USDs in value and market capitalization will be the private equity, private credit, real estate and infrastructure asset managers like Blackstone, KKR, Apollo, Carlyle, Ares, Blue Owl, CVC etc. 

Private equity firms, if artificial intelligence, AI turns out to be a bubble that wipes out trillions of USDs of value will suffer magnified losses since they are triple leveraged on the artificial intelligence, AI boom. Namely, private equity firms via private equity leveraged buyouts of artificial intelligence, AI technology companies take only the equity portion which is around 30 %, while borrowing the rest of the private equity buyout in debt and thus private equity firms leverage themselves several times. Via private credit lending to artificial intelligence, AI technology firms at interest rates of 7 % to 15 % usually, private credit asset managers take out additional leveraged, because their high interest loans are usually the first to be wiped out of the capital structure. In addition, private credit firms invest in securitization via buying Collateralized Loan Obligations, CLOs Collateralized Debt Obligations, CDOs. Private credit companies usually own the most junior tranches of Collateralized Loan Obligations, CLOs Collateralized Debt Obligations, CDOs, so they stand in line to be the first to loose possibly tens of billions of USDs of value. In addition, artificial intelligence, AI is  operationally leveraged. So all private equity, private credit, real estate asset management firms that have invested in artificial intelligence, AI are essentially triple leveraged. Triple leverage magnifies gains, but it also tends to cause multiple fold increase of losses.

If the artificial intelligence, AI boom turns out into a bust, technology companies will loose trillions of USDs of value, while private equity firms will loose hundreds of billions of USDs of value on their investments, according to Wolfteam Ltd.'s projections and estimates.

 

Carlyle And AI

 

Carlyle Group Inc or Carlyle, the world's fourth largest listed private equity, private credit, real estate asset management company in terms of market capitalization and the third largest in terms of managed assets alternative asset manager has invested heavily in artificial intelligence, AI by using its newly raised fund from the last 7 years, especially via its private credit business.

Carlyle, the fourth largest private credit asset manager in the world in terms of assets is using large part of its multi billion USDs raised for private credit to give out loans at 7 % to 15 % interest rates to artificial intelligence, AI technology companies. Artificial intelligence, AI companies, operating in a still fledgling and yet to prove sustainable business are often with sub investment grade rating and are considered risky, high yield or even "junk" bond rated issuers. That is why the loans to the small and mid-sized artificial intelligence, AI technology firms often come with interest rates of 7 % to 15 %.

Big money center banks like JPMorgan, Bank of America, Citigroup and Wells Fargo and even investment banking revenue high banks like Goldman Sachs and Morgan Stanley eschew such sub investment grade borrowers like small and mid-sized artificial intelligence, AI technology companies, because they are considered too risky and thus non bankable. 

Here come companies like Blackstone, KKR, Apollo, Carlyle, Ares, Blue Owl, CVC etc. which finance such  small and mid-sized artificial intelligence, AI technology companies via giving them loans out of their private credit assets under management with interest rates of 7 % to 15 %.

The artificial intelligence, AI hyperscalers Microsoft, Amazon, Alphabet and Meta are different, of course, because they are rated investment grade. The AI hyperscalers Microsoft, Amazon, Alphabet and Meta are hugely profitable each of them making more than 34 billion USDs in profit in 2024. So the AI hyperscalers Microsoft, Amazon, Alphabet and Meta can finance the build out of AI technology data centers themselves via their profits. In 2026 it is forecast that AI hyperscalers Microsoft, Amazon, Alphabet and Meta alone would invest more than 200 billion USDs in AI data centers.

For the small and mid-sized artificial intelligence, AI technology companies companies like Carlyle via their private credit high interest loans are indispensable since many small and mid-sized artificial intelligence, AI technology companies are loss making or cannot afford the multi billions of USDs AI data centers need alone.

So as long as the AI boom keeps going, Carlyle will keep lending out private credit 7 % to 15 % loans to small and mid-sized artificial intelligence, AI technology companies and if AI ends up changing profoundly our world by improving, making more efficient how we work, rest and communicate, Carlyle's market capitalization could rise to 127 billion USDs from its Carlyle's current 21.98 billion market capitalization. , according to Wolfteam Ltd.'s projections and estimates.

On the contrary, if AI turns out to be the greatest bubble in history, Carlyle, due to its leveraged investments in artificial intelligence, AI technology companies, could be disproportionately hurt. 

Ares And AI

 

Ares Management Corp or Ares, the leading private credit, real estate and private equity asset management company has a large exposure to artificial intelligence, AI via mainly its private credit business unit.

Which means Ares Management gives out loans with interest rates between 7 % and 15 % and sometimes even higher interest rates to artificial intelligence, AI technology companies. In the same time Ares uses its real estate assets under management to help build out AI data centers. Add to that that Ares does private equity leveraged buyouts of artificial intelligence, AI technology companies.

Private credit is a hot area in the last 7 years. Small and medium-sized loans have usually below investment grade credit ratings and lending to them would require charging interest rates between 7 % and 15 %. Money center banks and regional banks avoid making such risky loans. So enter large private credit asset managers like Carlyle, Apollo, Blackstone, KKR, Ares etc. which have raised private credit funds exactly to lend out at interest rates at 7 % to 15 %. So Ares and the other mentioned leading private credit asset managers finance the initiatives and projects of artificial intelligence, AI technology companies at 7 % to 15 % interest rate levels.

Artificial intelligence, AI is  operationally leveraged by nature and making basically leveraged loans, which giving out credit at 7 % to 15 % could be called, makes for double leverage and creates layers of risk in the private credit portfolio of Ares.

If the AI boom continues Ares stands to make returns of several fold on their investments and if the artificial intelligence, AI boom turns to bust both the private credit loans and the equity portion of Ares' artificial intelligence, AI private equity leveraged buyouts investments could be wiped out, according to Wolfteam Ltd.'s projections and estimates.

 

When Will The AI Boom Resemble A Bubble?

 

If the hyperscalers technology companies Microsoft, Amazon, Alphabet and Meta start making yearly reported net losses, then the current AI investment boom could resemble many signs of a bubble, according to Wolfteam Ltd.'s projections and estimates.

Another sign could be if the Price/Earnings ratios of  Microsoft, Amazon, Alphabet and Meta and other leading AI companies rise above 55.

A telling sign of first the Dot Com boom, then subsequent bust was that the leading companies in the Dot Com era were unprofitable. 

Nowadays, many Wall Street investors and research analysts and Silicon Valley investors and technologists point to that fact and also tout that now Microsoft, Amazon, Alphabet and Meta and other leading AI technology companies are very profitable.

That said, Microsoft, Amazon, Alphabet and Meta and other leading AI technology companies are investing huge amounts of capital, more than 350 billion USD in 2026 expected. And if these investments don't pay off Microsoft, Amazon, Alphabet and Meta and other leading AI technology companies could start incurring huge losses. Which could burst the possible AI bubble, according to Wolfteam Ltd.'s projections and estimates.

Apollo And AI

 

Apollo Global Management or Apollo, the global leading private equity, private credit and real estate asset management firm is investing large part of its newly raised assets in artificial intelligence, AI trades, namely AI data centers, leveraged buyouts of AI technology companies and private credit lending to AI technology companies, according to Wolfteam Ltd.'s estimates.

Artificial intelligence, AI is the trade of the moment, with many Wall Street investors and analysts and Silicon Valley technologists and investors forecasting that Artificial intelligence, AI is the fourth industrial revolution that will change everything. The Magnificent 7 AI technology companies Microsoft, Amazon, Alphabet, Meta, Apple, NVIDIA and Tesla are beating the S&P 500 for the last 5-7 years.

Apollo invests in Artificial intelligence, AI for several reasons, according to Wolfteam Ltd.'s estimates:

1) Artificial intelligence, AI is touted as the fourth industrial revolution, which is to deeply change how humanity works, rests, etc, with possible corresponding investment gains 

2) Artificial intelligence, AI is the trade that beats the S&P 500 for the last 5-7 years. Apollo is basically forced to invest in Artificial intelligence, AI technology companies by pension funds, endowments, insurers and individual investors in Apollo's funds who are asking why is Apollo not going to beat the indices and achieve outsized investment gains

3) Artificial intelligence, AI technology companies are highly valued, excessively valued by some estimates with huge market capitalization. Thus Artificial intelligence, AI is liquid enough to absorb the close to 500 billion USDs Apollo manages

Artificial intelligence, AI technology companies could turn out to be the latest fad and lead to a AI technology boom and bust akin to the 2000's internet dot com boom and bust, according to many investors and analysts.

The dot com boom and bust bore companies like Amazon and Google, however. So there is a high likelihood that the Artificial intelligence, AI current boom could create the leading technology companies for the nest decades. 

KKR And AI

KKR, the second largest private equity firm invests a significant portion of its newly raised assets in artificial intelligence, AI data centers and AI technology companies, according to Wolfteam Ltd.'s analysis.

KKR does this in order to achieve high returns, beat the S&P 500 and help drive the current AI boom, deemed by many as the fourth industrial revolution.

KKR invests in leveraged buyouts of AI technology firms, gives private credit loans to AI technology firms and data centers and invests part of its real estate portfolio in AI data centers.

Since AI is operationally leveraged and private equity buyouts are financially leveraged this double leverage creates higher opportunities on the upside, but also higher possible losses for KKR.

If the AI boom continues and AI changes our world profoundly, KKR is undervalued grossly, according to Wolfteam Ltd. In an AI positve case KKR's intrinsic value could rise to 430 billion USD from the current 116.42 billion USD.

Is Cryptocurrency Mining A Large Driver Of The Current AI Boom?

 

Cryptocurrency, Bitcoin mining is one of the main drivers of the current artificial technology, AI boom, according to Wolfteam Ltd.'s projections and estimates.

Cryptocurrencies mining is a highly computing intensive mining process and it needs flexible GPU chips like NVIDIA's to work, produce Bitcoins. NVIDIA is the leading company of the current AI boom. Cryptocurrency, Bitcoin mining drives a large part of the AI boom, partially behind the scenes. You need tens, if not hundreds of workstations to mine Bitcoin. All this in data centers equipped with the latest AI chips.

In short, cryptocurrency mining drives a large part of the demand for AI chips.

 

Blackstone And AI

 

Blackstone, the world's largest alternative asset manager with 1.2417 trillion USDs in private equity, real estate, private credit, hedge funds assets under management invests large portion of its newly raised funds in artificial intelligence, AI projects like AI data centers and private equity buyouts of AI technology companies, according to Wolfteam Ltd.'s estimates.

The fact that AI is a focus point of Blackstone's new investments is even stated on its website.  

Blackstone is basically forced along with the other leading private equity firms like KKR, Apollo, Carlyle, Ares, CVC to invest in artificial intelligence, since AI related investments in companies like Microsoft, Alphabet, Meta and Amazon have been beating the general US stock market  for several years now and in addition artificial intelligence is being forecast by Wall Street analysts and investors and Silicon Valley technologists and investors as the fourth industrial revolution. And private equity giants investments like Blackstone's private equity investments are being bench marked against the S&P 500. And according to various sources the average private equity portfolio has been beating the S&P 500 for the last 15 years.

What is more, artificial intelligence, AI provides for operational average and when this is taken atop on the financially leveraged nature of private equity which in general uses 30 % equity and leverages that with 70 % raised debt on average these two leverage factors provide for opportunity to magnify returns several times and bring about a boon for Blackstone's private equity investments.

In addition, investors' high expected return requirements force Blackstone to seek out high yielding private equity investments like artificial intelligence, AI. Here it must be said, that Blackstone is a prestigious, huge firm with extensive resources, which help it in providing management expertise to the AI technology firms it invests its private equity finds into.

In short, the mid-term future of Blackstone's investment portfolio is tied to artificial intelligence, AI, according to Wolfteam Ltd.'s projections and estimates. As the US economy, for that matter.

CVC and AI

CVC Capital Partners PLC, or CVC one of the largest European and global private equity, real estate and private credit asset management firms can reach 144 billion USDs of market capitalization if artificial intelligence, AI lives up to the current forecasts of Wall Street research analysts, investors and Silicon Valley technologists and investors, according to Wolfteam Ltd.'s projections and estimates.

CVC, along with the other leading private equity companies Blackstone, KKR, Apollo, Carlyle, Ares, etc. invests a large part of its raised funds in artificial intelligence, AI related AI data centers and related AI technology companies.

In addition, CVC is very profitable, posting net profit margin of 30 % + in the last four reported quarters.

Private equity in its essence is a leveraged equity investment with borrowed debt. AI and technology is an operationally leveraged investment. All this makers for a magnified effect of profits if private equity investments turn out to be profitable. And profitability begets profitability.

So, in short if AI changes our world as profoundly as Wall Street research analysts, investors and Silicon Valley technologists and investors currently forecast, this would make up for very profitable business for CVC. 

AI technology deals for CVC will increase in count, as in 2021 was evident in the last technology boom, AI deals will beget deals not only for CVC, but for Blackstone, KKR, Apollo, Carlyle, Ares, etc. And CVC's profitability will drive tens of billions of USD in market capitalization value for CVC, according to Wolfteam Ltd.'s projections and estimates.

However, if the current overly optimistic forecasts for AI don't turn out to be correct, US and global stock markets could fall more that 52 %, and CVC, being a leveraged investment in nature could fall even more. 

 

How To Value Private Equity Firms' Investments In AI?

 

Blackstone, KKR, Apollo, Carlyle, Ares, CVC, etc., the leading private equity, real estate and private credit asset management firms are investing more than 32 % of their new funds' assets in artificial intelligence, AI data centers companies, AI technology companies shares and loans to AI technology companies, according to Wolfteam Ltd.'s estimates.

Private equity firms tend to value firms on Earning Before Interest Taxes and Depreciation, EBITDA multiples. Wolfteam Ltd.'s corporate opinion is in agreement with the late great investor Charlie Munger that EBITDA is not a very good approximation for profitability. Especially, given the fact that data centers are depreciated on a 20 year time schedule by the hyperscalers Amazon, Microsoft, Alphabet, Meta and other technology firms. 

A much better measure would be the common Price/Earnings ratio. If artificial intelligence, AI's companies Price/Earnings ratio exceeds 55, this could be deemed a bubble, according to Wolfteam Ltd.'s projections and estimates.

A Price/Earnings ratio of 55 for an AI technology company would incorporate 20 %  yearly revenue growth, with net profit margins exceeding 17 % per year and US GDP growth of 5.7 % per year for the next 15 years. Which is simply a low probability assumption, according to Wolfteam Ltd.'s estimates.

At What Level Would The AI Boom Be Deemed A Bubble?

 

If the trailing Price/Earnings ratio on average for all the companies in the Nasdaq Composite surpasses 55, the artificial intelligence, AI technology boom can start showing signs of a bubble, according to Wolfteam Ltd.'s projections and estimates.

Currently the Nasdaq Composite Price/Earnings ratio is 27.72.

If the Nasdaq Composite Price/Earnings ratio exceeds 55 then the embedded growth expectations would require something like 5-6 % US annual GDP growth for the next 20 years, the largest public technology companies earnings growing by 15 % for 20 years and their net profit margin being above 22 % for the next 20 years to substantiate a Nasdaq Composite Price/Earnings ratio of 55, according to Wolfteam Ltd.'s projections and estimates. 

What Could Stop The Investments In AI Data Centers?

 

Microsoft, Amazon, Alphabet and Meta are planning to invest more than 100 billion USDs a quarter in artificial intelligence, AI data centers and the accompanying infrastructure in the next 3 years, according to public data and statements.

Currently, the Large Language Models(LLMs) powering the leading chat bots ChatGPT, Gemini and LLAMA are requiring huge amounts of computing power. If suddenly, chat bots start requiring much less energy to produce computing answers, this could decrease suddenly the investments in AI data centers by more than 80 % from current levels, according to Wolfteam Ltd.'s projections and estimates.

 If chat bots become more efficient or Large Language Models' shift from model training to inference, that is AI models start to use their own knowledge to make decisions, instead of relying on training, these both developments could reduce the huge demand for data centers.

Such an even was DeepSeek, the Chinese chat bot LLM which produced answers much more efficiently than the current chat bot LLMs.

For now, however with the current structure of LLMs, the need for computing power is bound to continue to grow and thus drive hundreds of billions of USDs investments a year in AI infrastructure.

One way, the system could fall apart is if the companies building out the AI infrastructure become too leveraged or indebted and crumble under their own debt burden. For now, such a scenario seems 3-5 years distant, according to Wolfteam Ltd.'s projections and estimates. 

 

Private Equity Firms Control 700 Billion USD In Life Insurance Assets

 

The largest Wall Street private equity firms like Blackstone, KKR, Carlyle, Apollo, Arres, CVC etc. now control 700 billion USDs in life insurance assets. The Wall Street take over of large part of the life insurance business, makes life insurance assets interwoven in the global financial markets fabric.

Life insurance companies in search of higher yielding assets often invest not a negligible part of their portfolios in Collateralized Loan Obligations, CLOs the underlying loans of which have been disbursed to higher risk borrowers in technology and other sectors often commanding interest rates of more than 10 %, according to Wolfteam Ltd.'s projections and estimates.

Many of these CLOs are also bought by the private equity arms of Blackstone, KKR, Carlyle, Apollo, Arres, CVC etc., which also on the other side disburse high yielding loans to risky borrowers in technology and other sectors thus commanding high interest rates of more than 10 %.

This kind of investments benefit the economy by supporting the technology companies which develop the AI infrastructure and thus drive the US GDP growth lately. The last figures show that large percentile of the US GDP growth is due to artificial intelligence, AI related investments.

On the other hand, however insurance being interwoven in the fabric of the economy means problems in one corner of the market or company could quickly spread and bring about a worldwide recession.

For now, however  the largest Wall Street private equity firms like Blackstone, KKR, Carlyle, Apollo, Arres, CVC etc. investments seem to be paying off by yielding high rates of return, which are plowed back to the pension funds and endowments which provide large part of the privater equity firms' assets under management.

 

What Could Stop The AI Rally?

 

The artificial intelligence, AI rally could stop if the hyperscalers Amazon, Alphabet, Microsoft, Meta and other large technology companies lie NVIDIA, Oracle start depreciating on a faster scale their investments in AI infrastructure or data centers, according to Wolfteam Ltd.'s projections and estimates.

As far as there is public information, Amazon, Alphabet, Microsoft, Meta, NVIDIA and Oracle are depreciating their artificial intelligence, AI data centers assets on a 20 year time scales.

If a company like NVIDIA and Alphabet makes a jump in the development of Graphical Processing Units and Computer Processing Units chips used for AI processing, this could cause the AI chips replacement cycle to fall to 5 years. This quickly render the AI data centers built by Amazon, Alphabet, Microsoft, Meta obsolete in several years instead of the current twenty years. Amazon, Alphabet, Microsoft, Meta together currently invest more than 100 billion USDs in AI data centers build out per quarter. If these data centers investments become quickly obsolete Amazon, Alphabet, Microsoft, Meta could lose in excess of 300 billion USDs per year.

Amazon, Alphabet, Microsoft, Meta are highly profitable each making 60 billion USDs or more in net profit per year. But if Amazon, Alphabet, Microsoft, Meta via AI data center deprecation start realizing more than 300 billion USDs in losses per year, this could make their market capitalization fall by more than 55 %. Such a development could drag the whole global stock market with the Nasdaq Composite falling more than 62 % from its current levels, the S&P 500 could fall more than 44 % and the Dow Jones Industrial Average could fall more than 38 % from their current levels, according to Wolfteam Ltd.'s projections and estimates.

The Chip Competition

 

There is news that Meta, Facebook's is in discussion to use some of the AI chips Alphabet, Google's owner is developing.

AMD and NVIDIA's stocks fell on the news. 

NVIDIA holds circa 95 % market share, 2 % NVIDIA and 3 % for the rest of Graphical Processing Units and Computer Processing Units for AI data centers.

There have long been reports that Alphabet is developing its own, custom AI chips. 

So the news that Meta made a multi billion USD AI chips order from Alphabet heats up the AI chips competition and could accrue trillions of USDs of future value on Alphabet if the company has created successful and well working AI chips, according to Wolfteam Ltd.'s projections and estimates.

 

Private Credit And AI

 

The recent bankruptcies of First Brands and Tricolor shook the circa 3 trillion USDs in assets private credit market, wherein the biggest players are the leading alternative investment management firms like Blackstone, KKR, Apollo, Carlyle, Ares, CVC etc. which invest in private equity, real estate and private credit.

Much of the investments from the last 10 years of the leading alternative investment management firms like Blackstone, KKR, Apollo, Carlyle, Ares, CVC etc. go in AI and private credit makes up for about 20 % to 30 % of their total investments. So the leading alternative investment management firms like Blackstone, KKR, Apollo, Carlyle, Ares, CVC etc. have heavily invested into lending via private credit to AI technology companies. Since much of the lending is via collateralization via Collateralized Loan Obligations, CLOs, Collateralized Debt Obligations, CDOs there is inherent leverage in those investments, which could magnify losses for the leading alternative investment management firms like Blackstone, KKR, Apollo, Carlyle, Ares, CVC etc.

Some of the loans and junior tranches of CLOs, CDOs have disbursed loans to technology companies with 10 %, 12 % or even upward of 15 % interests. Yes, many of these junior tranches have been sold to other institutional investors, but the leading alternative investment management firms like Blackstone, KKR, Apollo, Carlyle, Ares, CVC etc. still end up holding much of the CLOs, CDOs in their assets under management and some even on their balance sheets.

So, if there is bust, following the current boom in artificial intelligence, AI, the leading alternative investment management firms like Blackstone, KKR, Apollo, Carlyle, Ares, CVC etc. market capitalization could sink more than 35 % from the current stock market lagging values due to their exposure to private credit, according to Wolfteam Ltd.'s projections and estimates. 

If, however, the AI boom continues,  Blackstone, KKR, Apollo, Carlyle, Ares, CVC etc. could end up outperforming the market again, according to Wolfteam Ltd.'s projections and estimates.

How High Can Amazon's Market Capitalization Go In An AI Positive Case?

 

If the overly optimistic forecasts of Wall Street research analysts, investors and Silicon Valley technologists and investors for artificial intelligence, AI come to fruition, Amazon's market capitalization could reach 10.5 trillion USDs, according to Wolfteam Ltd.'s projections and estimates.

The premise for such a forecast is that Amazon's revenue reaches 1.1 trillion USDs and its net profit reaches 90 billion USDs, in Wolfteam Ltd.'s view.

Amazon is the leader in cloud computing with 34 % market share. The global cloud computing market size was estimated at USD 752.44 billion in 2024 and is projected to reach USD 2,390.18 billion by 2030, growing at a CAGR of 20.4% from 2025 to 2030. 

Amazon is also the leader in ecommerce. The global ecommerce market is expected to total $4.8 trillion in 2025.  

Cloud computing ensures leadership for Amazon also in the artificial intelligence, AI data center build out race. Amazon's Q chat bot is not as popular as OpenAI's ChatGPT, Alphabet's Gemini or xAI's Grok, but much of the world's computing goes via Amazon's servers.

If AI changes the world profoundly, Amazon will most likely lead the change and its market capitalization will rise a lot, if artificial intelligence makes us all multiple fold more productive.

There is the risk that artificial intelligence, AI's boom could turn into bust, much like the Dot Com boom and bust during which Amazon's market capitalization fell circa 90 % from peak to trough. 

What Could Derail The AI Rally?

Despite the recent circa 7 % Nasdaq Composite fall, the AI boom and following stock market rally seem to be in full swing.

Several events could stop the AI boom in its tracks, which could be defined by the Dow Jones Industrial Average, Standard and Poor's 500 and Nasdaq Composite and other major global stock market indices falling more than 40 % from their recent peaks, according to Wolfteam Ltd.'s projections and estimates:

 1) Policy error by the Federal Reserve, which could be defined as raising the target Federal Funds Rate and thus the interest rate level of the US economy by more than 2.5 % in the next 2 calendar years

2) Recently cracks appeared in the private credit market where several multi billion loans to firms like First Brands and Renovo are trading at steep discounts. Since there is much securitization in private credit and many of the loans disbursed are to technology firms, more bankruptcies could cause broader financial trouble. Some of the loans made to borrowers in the private credit market have paid out interest rates of  up to 20 % to 30 %, which partially explains the ongoing for several years now private credit boom

3) Sudden reset of investor expectations for the now apparently bright future of AI. This could be caused by faster depreciation tables on the current Graphical Processing Units chips used in AI data centers

4) Sudden and large rise in the price of oil, which could trigger galloping inflation

5) Sudden technological breakthrough akin to the Chinese DeepSeek, which would reset downwards by multiple fold investors' expectation of the needed future  billions, if not trillions of USDs spend on computing power to build out AI data centers

For now, however the wall of money looking for higher return in AI related technology companies seems bound to drive the AI rally further, according to Wolfteam Ltd.'s projections and estimates. 

 

How Deep Will The Current AI Correction Be?

 

The Nasdaq Composite is down 7.57 % from its recent peak on 29th October 2025 in what could be called an AI correction.

NVIDIA, the technology stock leading the AI revolution is down 15.7 % in the same period.

The draw down in AI technology stocks is driven by the current huge spending on AI data centers build out, the probable future profitability of the largest technology companies, the expected policy of the Federal Reserve, the current valuations of the leading technology companies, namely Apple, Microsoft, Alphabet, Amazon, Meta, NVIDIA and Tesla.

The Nasdaq Composite fell circa 35 % and NVIDIA fell circa 65 % in the 2021-2022 market rout which again focused on technology.

This time around the Nasdaq Composite could fall around 21 % from its 29 th October peak and NVIDIA's stock price could fall 40 % from its recent peak dragging along Apple, Microsoft, Alphabet, Amazon, Meta, NVIDIA and Tesla, according to Wolfteam Ltd.'s projections and estimates.

The Nasdaq Composite will swiftly recover along with the rest of the market, though, in Wolfteam Ltd.'s view.

The current promise of AI driven to a large extent by the overly optimistic forecasts of Wall Street research analysts investors and Silicon Valley's technologists and investors is simply too great and will drive the stock market for years. AI could turn out to be a bubble, but the subsequent bust could create new world improving companies akin to Amazon, Alphabet, Google's owner and Meta, Facebook's owner which were created in the aftermath of the internet Dot Com boom and 77 % fall of the Nasdaq Composite bust.

How High Can Alphabet, Google Owner's Market Capitalization Go In An AI Positive Case?

 

If the current overly optimistic forecasts of Wall Street research analysts, investors and Silicon Valley technologists, investors for artificial intelligence, AI come true and AI ends up changing our world by improving greatly, multiple times our productivity Alphabet, Google owner's market capitalization could climb to 14.7 trillion USDs, according to Wolfteam Ltd.'s projections and estimates.

Alphabet's current market capitalization is 3.61 trillion USDs.  

Gemini, Alphabet's Large Language Model has 600 million  monthly active users and it is second only to OpenAI's ChatGPT Large Language Model with its 800 million monthly active users.

Large Language Models like Gemini and ChatGPT are essentially enhanced, improved search engines, for the moment at least. A Large Language Model needs data to train itself on and Alphabet, via its property search engine Google arguably has the most powerful and encompassing data base in the world. So Gemini potentially could end up to be the best trained Large Language Model. Which will benefit extremely Alphabet, Google's owner.

Because it is clear already that Large Language Models like ChatGPT, Gemini, xAI's Grok, Meta's LLAMA tend to monopolize the interest much like Yahoo, Google and Facebook did in their time.

So, if artificial intelligence, AI lives up to the current forecasts, it would not be surprising if Alphabet, Google's owner ends up with 14.7 trillion USD in market capitalization, according to Wolfteam Ltd.'s projections and estimates.

Meta and Microsoft, as the main shareholder in OpenAI could also end up being worth trillions of USDs more than their current market capitalization. xAI could also end up being worth more than a trillion USDs in value, according to Wolfteam Ltd.'s projections and estimates.

 

How High Can Apollo's Market Capitalization Go In An AI Positive Case?

Apollo Global Management, the leading private equity, real estate and private credit asset management firm could reach 450 billion USDs in market capitalization, if artificial intelligence, AI lives up to the current forecasts of many Wall Street research analysts, investors and Silicon Valley technologists and investors, according to Wolfteam Ltd.'s projections and estimates.

Apollo has invested large share of its private equity, real estate and private credit assets under management in AI technology companies, AI data centers and online merchandise infrastructure. Since only small part of Apollo's company investments are via equity and the much larger part is in debt, Apollo's AI investments are leveraged in nature. Add to this AI technology companies' operational leverage and if AI changes the world as profoundly as many Wall Street research analysts, investors and Silicon Valley technologists and investors think, Apollo's investments in AI gains will be multiplied and Apollo's value will increase multiple fold.

However, if the AI boom turns into a bust, Apollo's losses could be magnified as well.

In the short-term, it seems the AI boom will continue. But it has to lead to AI technology company profitability, if it is to have a lasting effect on the world, in Wolfteam Ltd.'s view.

 

How High Can Carlyle's Market Capitalization Go In An AI Positive Case?

 

Carlyle, the private equity, real estate and private credit asset management firm could reach 102 billion USDs in market capitalization if artificial intelligence, AI lives up to the current forecasts of Wall Street research analysts, investors and Silicon Valley investors and technologists, according to Wolfteam Ltd.'s projections and estimates.

This compares with Carlyle's current market capitalization of 19.28 billion USDs.

Carlyle, along with the other leading  private equity, real estate and private credit asset management firms invests heavily tens of billions of USDs in technology companies, artificial intelligence infrastructure like data centers and online merchandising delivery centers giving it leveraged exposure to artificial intelligence, AI since Carlyle finances only a portion with equity, most with borrowed debt via loans or bonds.

Carlyle's stock price has under performed lately and if artificial intelligence, AI continues booming, most probably Carlyle's market capitalization will start growing due to the leveraged nature of Carlyle's investments in AI. Carlyle is a leader in private credit and currently interest rates on loans to AI technology companies often exceed 12 % or even 15 % per year. Which turns private credit in a very profitable machine for Carlyle.

 

What If AI Turns Out To Be A Bubble?

 

If the current artificial intelligence, AI boom proves to be a bubble, the Nasdaq Composite could fall more than 81 % from its current level, according to Wolfteam Ltd.'s projections and estimates.

Currently, according to many metrics the Nasdaq Composite current level is almost at the level of the Nasdaq Composite at the height of the Dot Com bubble. From peek to trough at the 2000 Dot Com bubble and subsequent bust the Nasdaq Composite fell 77 %.

This time around, if the AI bubble bursts, the fall of the Nasdaq Composite could be a little bit worst, in Wolfteam Ltd.'s view.

It is true that the leading technology companies with more than 1.35 trillion USDs in market capitalization each, like NVIDIA, Apple, Microsoft, Alphabet, Amazon, Meta and Tesla are extremely profitable, partially excluding Tesla due to its relatively low profitability. But Cisco and Microsoft were hugely profitable during the Dot Com boom also. In 2000 it turned out that that level of profitability was simply unsustainable. The leading technology companies in 2000 invested a lot in fiber optic infrastructure and the world needed decades to fully utilize that internet infrastructure.

It turned out that the technology giants in the 2000 boom over invested in internet technology infrastructure in the short-term, which hit their profits. But in the long-term, 10-15 years that over investment turned out good for society and the technology community.

Similarly now the hyperscalers Amazon, Alphabet, Microsoft and Meta are spending 100s of billions of USD per year in artificial intelligence, AI infrastructure. It may well turn out that in the short-run  hyperscalers Amazon, Alphabet, Microsoft and Meta are over investing, but in 10-15 years the AI infrastructure they are now building may be fully utilized.

In the worst case scenario, the graphical processing unites chips mainly NVIDIA manufactures in the current AI data centers could turn out to be obsolete in 5 years, replaced by newer, with far better technology GPU chips. Which will deprecate the value of the current AI data centers and hit the  hyperscalers Amazon, Alphabet, Microsoft and Meta with hundreds of billions USDs of losses.

Such a scenario at the moment has a probability of around 25 %, according to Wolfteam Ltd.'s projections and estimates.

If the AI dreams of robots everywhere, billions of robots serving humanity and AI data changing our lives, how produce and consume leisure come to fruition in the most optimistic scenarios of Wall Street research analysts, investors and Silicon Valley investors and technologists, NVIDIA, Apple, Microsoft, Alphabet, Amazon, Meta and Tesla could prove grossly undervalued.

 

How High Can KKR's Market Capitalization Go On AI?

KKR, the leading private, real estate and private credit alternative asset manager could climb to 320 billion USDs in market capitalization value, if artificial intelligence, AI lives up to the current forecasts of many Wall Street research analysts, investors and Silicon Valley technologists, because KKR is a leading investor in AI data centers, online merchandise trading infrastructure and outright investments in AI technology growth and mature companies, according to Wolfteam Ltd.'s projections and estimates.

That compares to KKR's current 108.09 billion marker capitalization. 

KKR's revenue could climb from the current 16 billion USD on average for the last five years to 43 billion USDs on average on larger and bigger in numbers yearly deals in artificial intelligence, where much of the leading private, real estate and private credit alternative asset manager investments go currently via investments in AI data centers, online merchandise trading infrastructure and outright investments in AI technology growth and mature companies, according to Wolfteam Ltd.'s projections and estimates.

KKR could benefit from both its current exposure to AI and future increase of the value and number of deals involving artificial intelligence, AI companies.

AI's current boom could turn into a bust of course, but for the time being self perpetuating expectations and the higher revenues and profits of AI firms drive the AI boom and the flourishing of AI technology companies. 

 

 

How High Can Microsoft's Market Capitalization Go On Artificial Intelligence?

Microsoft's market capitalization could reach 11.5 trillion USD in 10 years if Artificial Intelligence, AI lives up to the current high expectations of Wall Street analysts, investors and Silicon Valley technologists, according to Wolfteam Ltd.'s projections and estimates.

Microsoft's current market capitalization is 3.67 trillion USD.

In 10 years time Microsoft's revenue could reach 500 billion USD and with the current net profit margin of 36 % this would make for a net yearly profit of 180 billion USD, in Wolfteam Ltd.'s view. Even at such revenue and profit a possible future Microsoft market capitalization of 11.5 trillion USD will make for circa 64 Price/Earnings ratio which still makes up for a significant future growth.

AI could still yet prove a bubble, but in the mean time the leading technology companies could reach stratospheric values in market capitalization. 

 

 

 

How High Can Apple's Market Capitalization Go In An AI Positive Case?

 

Apple's market capitalization could reach 18 trillion USDs if AI reaches its full potential and transforms society as forecast currently by many Wall Street research analysts, investors and Silicon Valley technologists.

That compares to Apple's current market capitalization of 4.01 trillion USDs. 

Apple would have to report 700 billion USDs in annual revenue and 180 billion USD in annual profit in 10 years to justify 18 trillion USDs market capitalization, according to Wolfteam Ltd.'s projections and estimates.

The main driver of such a revenue increase will be iPhone, Macintosh and iPad sales, which would be one of the main carriers of the current artificial intelligence, AI revolution, if AI lives up to its current hype.

 

 

 

How High Can Blackstone's Market Capitalization Go In An AI Positive Case?

 

Blackstone Inc, the leading private equity, real estate, private credit alternative asset manager along with the other KKR, Apollo, Carlyle, Ares,  Blue Owl, CVC, etc. leading private equity, private credit, real estate alternative asset managers is at the forefront of investing, investments in artificial, AI.

If artificial intelligence, AI lives up to the current of most Wall Street research analysts and investors estimates to 80 %, that Blackstone's market capitalization, as the leading alternative asset manager investing in AI, could rise to 1.1 trillion USDs in 5 to 7 years, according to Wolfteam Ltd.'s projections and estimates. 

That compares to Blackstone's current market capitalization of circa 175 billion USDs. 

Blackstone, KKR, Apollo, Carlyle, Ares, CVC, Blue Owl Capital, etc. leading private equity, private credit, real estate alternative asset managers invest large portion, usually more than 35 % of their newly raised and existing funds in artificial intelligence, AI infrastructure like data centers, energy companies.

Just recently, Meta, Facebook's owner announced a 30 billion data center financing bill with Blue Owl Capital .

It is expected that such data center financing structures will proliferate in the future.

Blackstone is expected to remain the largest and leading institutional investor in artificial intelligence in AI, which sooner or later will be reflected in its market capitalization, in Wolfteam Ltd.'s view.

If AI reaches only 30 % of its current estimated potential, Blackstone's market capitalization could fall to 120 billion USD, a circa 30 % of Blackstone's current market capitalization. The fall would be cushioned by Blackstone's portfolio current investments, which are rich cash flow positive and large dividends yielding.

 

How High Can NVIDIA Stock Market Capitalization Go?

 

Currently, the market for AI graphical processing units chips is estimated by various Wall Street analysts to grow to 400 billion USDs by 2029.

NVIDIA controls between 70 % and 95 % of the market for market for AI chips used for training and deploying AI models.

So, If NVIDIA keeps its current market share and reaches 400 billion USD in annual sales by 2035 and one applies the current Price/Sales ratio of circa 30 and increases it to 43, NVIDIA's market capitalization could reach 17.2 trillion USD in the very optimistic case that AI lives up to circa 75 % of its current estimated by Wall Street research analysts and investors potential, according to Wolfteam Ltd.'s projections and estimates.

If, however artificial intelligence, AI's potential lives up only to 30 % of the current estimates, the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite indices could fall by 53 %, 64 % and 80 % from their recent peaks.

NVIDIA's market capitalization in AI living up to only 30 % of its potential case could fall 84 % from its recent peak to 714 billion USDs, according to Wolfteam Ltd.'s projections and estimates.

 

AI Valuation Multiples

 

For developed AI hyperscalers Price/Earnings of 40 and Prices/Sales of 7 to 10 seem adequate, according to Wolfteam Ltd.'s projections and estimates.

For fast growing startup AI companies Price/Earnings of 200 to 300 and Prices/Sales from 20 to 40 seem to capture adequately the possible long-term growth, in Wolfteam Ltd.'s view.

Where Will The AI Hyperscalers Get The Funds For AI Data Centres? Private Equity Could Help

 

Alphabet, Meta, Microsoft and Amazon have each announced intentions to invest hundreds of billions of USDs in artificial intelligence, AI infrastructure, computing data centers that is.

Alphabet has around 95 billion of USDs in cash, Meta has around 47 billion USDs in cash, Microsoft has close to 95 billion USDs in cash and Amazon has close to 93 billion USDs in cash on their balance sheets according to public data.

So the question is where Alphabet, Meta, Microsoft and Amazon will get the hundreds of billions of USDs in funds to build out AI data centers.

In the last weeks Meta announced a 27 billion USDs joint venture with Ares, the private credit, private equity and real estate asset management company.

This could be where the hypercalers Alphabet, Meta, Microsoft and Amazon will look for the needed AI compute funds. Basically, they will use private equity, private credit's firm dry powder capital of 2 billion USDs for investing to raise the money. The leading private equity companies will most likely raise new fund vehicles to finance the AI boom.

In short, the artificial intelligence, AI boom investing will continue for the time being, in Wolfteam Ltd.'s estimates. 

Will Private Equity Firms Continue To Invest In AI?

 

Private equity firms will most probably continue investing in artificial technology, AI firms and AI data centers due to fear of missing out and not beating the S&P 500, according to Wolfteam Ltd.'s projections and estimates.

Technology and AI based technology in particular is what has worked since 2013. In the first years since 2013 it was the smartphone, after 2015 came cloud computing, but both the smartphone and the cloud computing and storage revolution are driven by algorithms and artificial intelligence, AI models which underlie them. 

According to many Wall Street equity and fixed income research analysts and investors, the leading private equity firms Blackstone, KKR, Apollo, Carlyle, Ares, CVC etc. will go on financing the AI boom, in order not to miss out on outperforming the S&P 500, the Dow Jones Industrial Average, the Nasdaq Composite and to go on fulfilling the promises they made to their Limited Partnerships investors.

Private equity firms need constant incoming cash flow and deal flow to return money to their Limited Partnerships investors. Artificial intelligence, AI technology firms lack dividends cash flow, but they provide for dynamic deal flow, which suits private equity firms, which finance heavily the fourth industrial revolution or artificial intelligence, AI and its profound change effect on our everyday life. 

Private Equity Funds Still Value AI Firms Too Conservatively

 

Private equity firms, influenced by their usual workflow value artificial intelligence, AI technology firms still a bit conservatively.

Private equity firms tend to look more at the past performance of mid-sized AI technology firms, that their possible future revenue and net profit growth paths, according to Wolfteam Ltd.'s projections and estimates

This is because private equity firms have to constantly return money to investors due to their funds' maturities mismatch. Private equity firms have to constantly do deals, which makes them value AI tech firms too low for the path breaking nature of artificial intelligence, AI, in Wolfteam Ltd.'s view. 

Hyperscalers Valuation. Alphabet, Microsoft, Amazon, Meta and Apple

Hyperscalers are computing companies that provide large computing resources as computing power, storage, AI, artificial modelling or statistical modelling and provide extreme scalability to accommodate workloads at massive scales.

Alphabet, Microsoft, Amazon, Meta and Apple, the leading artificial intelligence, AI hyperscalers are all valued into more than 1.5 trillion USDs each. These are staggering amounts of money, each more than the GDP of any economy outside the 7 largest economies like USA, China, Germany, Japan, UK, France, Canada, Italy and even some more.

Are the leading artificial intelligence, AI hyperscalers Alphabet, Microsoft, Amazon, Meta and Apple overvalued? No, according to Wolfteam Ltd.'s projections and estimates.

How to value the hyperscalers.? First, global GDP is 111.25 trillion USDs. Global financial assets are 305 trillion USDs according to the Boston Consulting Group report. Taking into account these macroeconomic figures and the revenue and profit reported by Alphabet, Microsoft, Amazon, Meta and Apple and extrapolating future growth and profitability, based on the current fundamentals and competitive advantages of Alphabet, Microsoft, Amazon, Meta and Apple, the AI, artificial intelligence hyperscalers, Alphabet, Microsoft, Amazon, Meta and Apple could be valued at 8 trillion USDs for Alphabet, 5.9 trillion USDs for Microsoft, 4.3 trillion USDs for Meta, 6.3 trillion USDs for Amazon and 7.1 trillion USDs for Apple according to Wolfteam Ltd.'s projections and estimates.

All these tens of trillions of USDs of value are driven by the fourth industrial revolution of artificial intelligence, AI, which will enhance greatly our productivity, provide us with better leisure, increase our well being and ultimately help us live better lives. There will be intermediate hyper booms and subsequent busts of trillions of USDs of created and subsequently destroyed value, which will characterize the current artificial intelligence, AI wave in Wolfteam Ltd.'s view, but ultimately artificial intelligence,AI should keep changing our lives and creating huge wealth in the process.

 

AI Data Centres Are Private Equity Firms Hottest Investment

 

Blackstone, KKR, Apollo, Carlyle, Ares, CVC, etc., the largest private equity firms are investing en masse in artificial intelligence, AI data centers and online merchandise trade distribution centers.

Apparently, the largest private equity firms bet on the AI boom continuing and changing profoundly our world. Yes, AI is the fourth industrial revolution, but artificial intelligence, AI's progress will be slower and more gradual with many mid-sized booms and busts than many investors and analysts assume, according to Wolfteam Ltd.'s projections and estimates.

Private equity and private credit firms sometimes invest in technology firms with Price/Sales ratios of 10 or more or Price/Earnings of 43 or more. Such technology firms investments could prove too volatile for the institutional capital, private equity fund managers manage, in Wolfteam Ltd.'s view. At least in the concentration they are doing it.

But for now the AI boom seems to go on. 

OpenAI Deals With NVIDIA, AMD And Oracle

 

OpenAI has in the recent days announced circular deals with NVIDIA and AMD where the seller in fact finances the buyer to buy their products, akin to the circular lend-to-buy deals during the peak of the dot com boom, which fed the internet boom and contributed to its subsequent bust, according to many investors and analysts.

NVIDIA for example will invest up to 100 billion USD in OpenAI, with which OpenAI basically will turn around and buy NVIDIA graphical processing units, which will power to be built in the future OpenAI AI data infrastructure centers. 

In addition AMD and OpenAI in the last week announced a deal which could see AMD getting tens of billions of USDs in value of computer processing units and graphical processing units chip units orders and in exchange OpenAI could end up owning up to 10 % of AMD's stock, if AMD's stock hits certain targets. 

What is more, OpenAI signed a 300 billion USD in future revenue deal for Oracles in exchange for 4.5 gigawatts of additional Stargate project capacity.

The OpenAI NVIDIA and OpenAI AMD deals seem somewhat similar to the lend-to-buy deals that many technology companies concluded in the dot boom and bust era, which basically are technology companies lending potential buyers money to finance purchasing their services and products.

The money that Open AI will receive from AMD and NVIDIA is scheduled to flow back into AMD and NVIDIA to purchase graphical processing units chips, which will power data centers for the OpenAI, Oracle and SoftBank planned Stargate storage capacity infrastructure for artificial intelligence, AI which is supposed to cost around 500 billion USDs.

Basically, such transactions could go along, as long as the artificial intelligence, AI data boom keep going. If artificial intelligence does not live up to its current expectations, we could experience another technology bust, which could see the Nasdaq Compsite falling more than 55 % from its peak and many flagship companies could go out of existence, according to Wolfteam Ltd.'s projections and estimates.

But for now, artificial intelligence, AI is set to change every industry we know by expanding the business' productive capability and enhancing human potential by helping us produce more, rest more, enhance our wealth more and in effect live better lives lead by the fourth industrial or artificial intelligence, AI revolution, in Wolfteam Ltd.'s view. 

Private Equity Deals Will Recover

 

Private equity deal making will soon recover, according to Wolfteam Ltd.'s projections and estimates.

Private equity has close to 2 trillion USDs of dry powder or capital for deals.

The largest private equity firms have so far preferred to do deals in artificial intelligence, AI, IT related sectors like data centers infrastructure or energy or online merchandise related deals like delivery centers.

That said, many other sectors are getting less capital and are now undervalued, according to Wolfteam  Ltd.'s estimates.

Utilities, commodities, industrials, partly energy are some of the dividend yielding, undervalued sectors, which could prove of interest to private equity.

Especially if the AI boom slows down.

In short, private equity has a whole universe of good yielding assets to choose from outside artificial intelligence, AI where most of private equity assets and deal making has been flowing into.