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> TensorWave will fund its bit barn build by using its GPUs as collateral for a large round of debt financing, an approach used by other datacenter operators.
by klelatti 3y ago
> TensorWave will fund its bit barn build by using its GPUs as collateral for a large round of debt financing, an approach used by other datacenter operators.
Hmmm. This seems like an odd risk for the lenders. Asymmetrical with little upside and security depends on continuing demand for GPUs. When the AI tide goes out who will be left with the losses.
- CuriouslyC 3y agoWhen these silly motorized coaches fail, what will we do with all the paved roads? The horses hate it!
- michaelbuckbee 3y agoI take your point, but the risk is that even further advances on a price/performance basis will lap this investment.
- deleted 3y ago[deleted]
- fvv 3y agoAlso lenders on h100 value faces risks when gb200 comes out as the prices of gh goes down a lot
- conradev 3y ago> This seems like an odd risk for the lenders. Asymmetrical with little upside Upside and risk are usually priced into the loan as the interest rate
- deleted 3y ago[deleted]
- latchkey 3y agoDisclosure: competitor to TW. I see this as super risky as well. I'm taking a totally different approach with my business. We are only growing with customer demand. First off, we are getting a decent number of GPUs to rent, which should cover our initial capacity needs. Then as we grow, we will push revenue + further investment back into more purchase orders. We can also order and deploy compute on a very short timeframe, so if we have a customer that wants a bunch of compute that we don't have today, we will get it online relatively quickly. Grandiose claims of 20k GPUs by the end of the year, almost never works out the way you want it to.