This article doesn't mention it, but PIMCO is lead lender
"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."
Ugh. A year ago, I was (a) fairly confident that the AI bubble would burst, but (b) fairly confident that contagion would be limited; a bunch of startups would evaporate, and some VCs would be badly burned or fail, but the broader economy would largely shrug and carry on.
Based on this sort of thing, I'm not sure I still believe (b).
Are the design specifications, like interconnect, GPUs, CPUs, memory and storage of this new cluster public? I seem to recall xAI has made public theirs. I’m mostly asking out of curiosity and a desire to read up on the SOTA hardware specs being used. EDIT: this has some interesting details — https://www.adwaitx.com/meta-prometheus-ai-cluster/
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.
People wanted massive investments in the electric grid. Thanks to AI boom, that's finally happening. Except, they're also going to be massively using the electric grid.
Maybe we'll be blessed by AI companies making money but staying under usage projections. Then, those areas have more power.
The Bloomberg source is more informative with respect to the financing (https://archive.ph/5WGcA)
> Blue Owl Capital Inc. and Meta will split ownership of the Hyperion data center site in Richland Parish, Louisiana, with the tech giant retaining just 20% of it, according to people with knowledge of the matter. To finance the build-out, Morgan Stanley arranged over $27 billion of debt and about $2.5 billion of equity into a special purpose vehicle
At 225 over (current?) treasuries:
> The bonds priced at about 225 basis points over Treasuries,
If this data center in Richland Parish, Louisiana, is full of obsolete hardware in a few years, do they just wait for the next hurricane, open all the doors and windows, and phone the insurance company with the bad news?
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[ 2.8 ms ] story [ 45.6 ms ] threadOr maybe they’re ok with the collateral on offer.
"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.
Ugh. A year ago, I was (a) fairly confident that the AI bubble would burst, but (b) fairly confident that contagion would be limited; a bunch of startups would evaporate, and some VCs would be badly burned or fail, but the broader economy would largely shrug and carry on.
Based on this sort of thing, I'm not sure I still believe (b).
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.
Maybe we'll be blessed by AI companies making money but staying under usage projections. Then, those areas have more power.
> Blue Owl Capital Inc. and Meta will split ownership of the Hyperion data center site in Richland Parish, Louisiana, with the tech giant retaining just 20% of it, according to people with knowledge of the matter. To finance the build-out, Morgan Stanley arranged over $27 billion of debt and about $2.5 billion of equity into a special purpose vehicle
At 225 over (current?) treasuries:
> The bonds priced at about 225 basis points over Treasuries,
(Meta? Blue Owl Capital's institutional investors? Blue Owl Capital's private investors?)