'Dean Of Valuation' Aswath Damodaran Warns Private Credit Is 'Setting Itself Up

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NYU finance professor Aswath Damodaran slammed private credit lenders funding the artificial intelligence data-center boom, warning that the rapidly growing industry is becoming increasingly reckless as capital floods into the sector.

Speaking in an interview with Lumida Wealth Management released Tuesday, Damodaran raised concerns about lenders financing large-scale AI infrastructure projects.

"Who are these lunatics who are lending money to the data centres?" Damodaran said.

The valuation expert, often referred to as the "Dean of Valuation," argued that private credit has outgrown its original role of serving borrowers that traditional banks could not finance.

"People assume private credit guys must be smart guys. No, they're not. They're sheep," he said.

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Damodaran's remarks come as private capital plays an increasingly important role in financing AI infrastructure. Goldman Sachs said earl

Fuente original: Yahoo Finance (https://finance.yahoo.com/technology/ai/articles/dean-valuation-aswath-damodaran-warns-104614246.html)