this post was submitted on 30 Jun 2023
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The interest rate hike in the USA by the federal government caused this. The companies can't borrow money for nearly free any more. All the entities who would have been offering these loans are now able to buy government bonds with a much more guaranteed return on investment. This means the corporations must squeeze more profit out of their products to pay back loans. There are an enormous amount of large money transactions like this used to run a large business. They do not operate on cash reserves all the time. They have assets and are always evolving to stay relevant. Most businesses have enormous asset holdings but limited liquidity.
This best answers the OPs question. We know why it happens in general, but this is why everything is doing it in overdrive right now.
I also think Spez is trying to rush into an IPO before the bottom truly drops out and the company folds.
There's also a clampdown on venture capital happening now. Investors are getting tired of waiting indefinitely for returns on over-valued media companies. For any running in the red, things are going to get tight. That means layoffs that result in lower quality service and more burden on users for revenue. Social media has never been a profitable and sustainable corporate enterprise.
A lot of the value was thought to be in LLM's but with the meta weights leaked, and the open source ability to patch the weights without refactoring the base, or even becoming a detriment, controlling all the data holds less value.