Wall Street now controls the AI buildout, and VCs are in for PIK interest pain
matt_slotnick · x · 2026-10-23
Conor Sen observes that Wall Street, rather than Silicon Valley, now controls the financing of the AI buildout. Matt Slotnick adds a warning: some VCs are about to get a distressing introduction to PIK interest, as AI datacenter deals lean on high-leverage private-credit structures where accrued interest compounds into principal — a classic sign of building risk.
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