"Pacific Investment Management Co. (PIMCO) is the anchor lender on the deal. The debt, which matures in 2049, is fully amortising and has been rated A+ by S&P. The bonds were priced at around 225 basis points over U.S. Treasuries."
https://pe-insights.com/blue-owl-and-meta-close-record-30bn-...
Oof.. I don't know about this one.
I assume eventually all this investment should result in price drops for cloud GPU rates. Maybe somebody has setup an automated rate aggregator and collected the data? It would be interesting to see the historical data and monitor the changes, like dollars per TFLOP/hr or something standardized to track over time like other economic data or prices. EDIT: this is along the lines and pretty interesting — https://www.unitedcompute.ai/gpu-price-tracker
I know I’m mixing two different thoughts but they are connected in my head for entrepreneurs interested in starting independent tech/AI/LLM businesses needing heavy compute infrastructure.
Old GPUs (ex hopper, A100) prices has been dropping but the new ones will go up.. so yes it doesn’t need to crash for you to have cheaper gpus
But tech companies horde cash because they don't have anywhere they see as a good investment.
You'd think investing in their own data centers would get a better return than cash.
Kind of makes you wonder why everyone is so eager to fund these projects for them.
You'll be paying a higher rate of interest on your loan than you're receiving on your cash.
You'd be better off taking the $1m directly out of your cash pile.
master_crab•2h ago
Or maybe they’re ok with the collateral on offer.
sottol•1h ago
mlnj•1h ago
The latest from AI is better targeted ads and better adult content didn't you hear?
temp0826•1h ago
erichocean•1h ago
mlnj•13m ago
Mountain_Skies•1h ago
Fade_Dance•1h ago
If Blue Owl is providing capital for an equity slice, they get huge leverage on their cut baked into the deal. Pension funds that may end up buying debt in the deal eventually don't want to actually fund the equity of the project and take the risk booting it all up while sitting at the front of the capital stack with corresponding risk of getting wiped out (even if it's a Meta partnership), they simply want securitized fixed income, and make it as vanilla as possible.
So the question is more "will Private Credit (or pension funds/institutions) take debt backed by datacenter collateral with long term service agreements with Meta" and the answer is yes. There is much lower quality stuff than that in the PC space.