Let me get this straight. APO is financing $35 bn more chips for Anthropic while xAI is busy leasing pit its chips to Anthropic and Google bc it has spare capacity. Looks to me like the industry over-ordered too many GPUs and private credit hasn’t gotten the message yet. Could get hung with a lot of unused chips. CRWV and APLD will be the first to feel the pain along with lenders. Lots of vaporware out there w less than 5% of announced data center capacity through 2030 actually under construction and another 18% funded. The other 77% still needs funding. Private credit is going to choke on any more funding of the sector.
Just found this substack. Really interesting stuff. Thank you for synthesizing all the information. Looking forward to the next post.
Great summary of the Anthropic deal. What is the source that Athene is buying the A2 debt? And have ratings been made public?
Let me get this straight. APO is financing $35 bn more chips for Anthropic while xAI is busy leasing pit its chips to Anthropic and Google bc it has spare capacity. Looks to me like the industry over-ordered too many GPUs and private credit hasn’t gotten the message yet. Could get hung with a lot of unused chips. CRWV and APLD will be the first to feel the pain along with lenders. Lots of vaporware out there w less than 5% of announced data center capacity through 2030 actually under construction and another 18% funded. The other 77% still needs funding. Private credit is going to choke on any more funding of the sector.