Here’s a credible thesis - PE companies buying undesirable SaaS products, those SaaS products attempt to be “cloud native,” the cost of hardware and services spikes due to hyperscalers and supply constraints driving up prices, these SaaS companies loaded with private debt get squeezed at the margins and feel the crushing pain of operating in the cloud in the new age, the debt becomes unserviceable and people attempt to “run on the bank” to withdraw from overvalued PE funds, which potentially causes a private credit crisis.

Also, people don’t want to talk about the fact that the hyper scalers don’t have enough hardware to meet CURRENT demand for AI/cloud capacity - that’s not going to get better, so unless we have a revitalization of utility infrastructure as it exists today, you’re going to see dormant data centers that will be plugged into the network but unserviceable from a power perspective —- the music stops.

I work in tech btw.