Oracle, Broadcom and SpaceX are in talks to finance AI chips, with Apollo at the table. Each deal uses a different structure to make the money work, and each still needs a powered building.
The footnote that stood out to me: Athene is guaranteeing 15% of a $35B chip platform — the insurers are officially part of the private-credit machinery now. Worth a skim if you want the receipts:
the broadcom 85% line is the most interesting bit here. it turns a custom-chip loan into a credit question about broadcom.
that's the pattern in neocloud debt too. coreweave's first GPU loan (DDTL 1.0), secured mainly on the GPUs, cost ~15% effective. its DDTL 4.0, backed by investment-grade contracts, is SOFR + 2.25%, ~7%. IREN's GPU loan tied to microsoft: 6%. same chips, the rate follows whoever stands behind the payments.
one thing that stood out: broadcom backs 5-year lease terms while oracle depreciates its servers over 6. do you read the 5-year tenor as lenders quietly not underwriting the 6th year?
The footnote that stood out to me: Athene is guaranteeing 15% of a $35B chip platform — the insurers are officially part of the private-credit machinery now. Worth a skim if you want the receipts:
https://thetape2.substack.com/p/the-ai-buildout-in-footnotes
the broadcom 85% line is the most interesting bit here. it turns a custom-chip loan into a credit question about broadcom.
that's the pattern in neocloud debt too. coreweave's first GPU loan (DDTL 1.0), secured mainly on the GPUs, cost ~15% effective. its DDTL 4.0, backed by investment-grade contracts, is SOFR + 2.25%, ~7%. IREN's GPU loan tied to microsoft: 6%. same chips, the rate follows whoever stands behind the payments.
one thing that stood out: broadcom backs 5-year lease terms while oracle depreciates its servers over 6. do you read the 5-year tenor as lenders quietly not underwriting the 6th year?
Pretty much. The loan covers the contract. The sixth year is the owner's bet on what old chips are worth, and nobody knows yet.
exactly. and the lender already picked a side. coreweave's DDTL 4.0 is priced off the contract, not the GPUs
the year-6 bet sits with the equity 🐈