Arthur Hayes, the former BitMEX CEO and co-founder of Maelstrom, said at the Gamma Prime investment conference in Singapore that humanity has wasted trillions of dollars on AI data centers. His core argument was that the current buildout may end in a bust followed by a bailout, with Bitcoin and other cryptocurrencies positioned to absorb part of the capital that follows.
Hayes said AI companies such as Anthropic are not yet profitable, even as their computing demand underpins more than $1 trillion in investment-grade debt tied to the sector. He expects a pressure point to emerge once data centers now under construction are completed and infrastructure providers begin asking to be paid, a moment he said could arrive by late 2027 or 2028.
He also outlined a scenario in which debt downgrades leave insurers undercapitalized, prompting Washington to step in by buying compute capacity or printing money for a rescue. In that case, he said, Bitcoin would be the best-performing asset. Hayes added a caveat: if AI becomes useful enough within the next 12 months, expanding demand could still make AI companies profitable.
Arthur Hayes, former CEO of BitMEX and co-founder of Maelstrom, said at the Gamma Prime investment conference in Singapore that humanity has wasted trillions of dollars on AI data centers. In his view, the overbuild could end in a bust and a bailout, with Bitcoin and other cryptocurrencies absorbing some of the capital that follows.
Hayes points to debt tied to unprofitable AI firms
Hayes said AI companies including Anthropic are still not profitable, even though their demand for computing power is supporting more than $1 trillion in investment-grade debt. He said the strain may show up once data centers currently under construction are completed and infrastructure providers start demanding payment, which he expects could happen by late 2027 or 2028.
Bitcoin seen as a beneficiary in a bailout scenario
He said that if debt downgrades leave insurance companies short of capital, Washington could eventually respond by buying compute power or printing money for a rescue. Under that scenario, Hayes said Bitcoin would be the best-performing asset.
Hayes also acknowledged a different outcome. If AI becomes useful enough over the next 12 months, expanding demand could allow AI companies to turn profitable.
The remarks were reported by CryptoPotato and summarized by Techub News.
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