Meta has plenty of money, why do they need private equity to fund this?
Dump risk on others
Meta convinces Blue Owl to cut $30B check for its Hyperion AI super cluster
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Re: Meta convinces Blue Owl to cut $30B check for its Hyperion AI super cluster
#22Debt financed. Who is loaning money to these things? I feel there must be an other level of bubble there...
Hence the big push currently ongoing to allow 401ks to invest in private markets
Re: Meta convinces Blue Owl to cut $30B check for its Hyperion AI super cluster
#23Debt financed. Who is loaning money to these things? I feel there must be an other level of bubble there...
Seems like a stable investment with returns locked in through 2049 unless Facebook defaults.
2049... 20 years. So what exactly is being funded? Just the infra? Walls, power grid, cooling, security cameras and such. Or is any part of this the servers? Is there need for more money in say 2039?
Re: Meta convinces Blue Owl to cut $30B check for its Hyperion AI super cluster
#24Meta has plenty of money, why do they need private equity to fund this?
Make the numbers look better? There must be benefits of moving these numbers from column to some other column. Or even partially hiding them. Thus allowing stock to be priced higher based on some metric...
Re: Meta convinces Blue Owl to cut $30B check for its Hyperion AI super cluster
#25This 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." https://pe-insights.com/blue-owl-and-meta-close-record-30bn-... Oof.. I don't know about this one.
Pimco - the company that originated all those bonds every pension fund is sitting on.
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Re: Meta convinces Blue Owl to cut $30B check for its Hyperion AI super cluster
#26Meta has plenty of money, why do they need private equity to fund this?
Isn't the first rule of business that you spend other people's money, whenever possible?
Another #1 is to get a good return on your money.
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.
Re: Meta convinces Blue Owl to cut $30B check for its Hyperion AI super cluster
#27Earlier quoted context omitted.
Isn't the first rule of business that you spend other people's money, whenever possible?
Another #1 is to get a good return on your money. 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.
Because that’s the only place with growth
Re: Meta convinces Blue Owl to cut $30B check for its Hyperion AI super cluster
#28Earlier quoted context omitted.
Everyone is very silent on AGI in the past months. The latest from AI is better targeted ads and better adult content didn't you hear?
I don't know about AGI, but AI employees replacing human labor is well within range today.
Excel sheets have replaced many humans too. Pretty low bar for AGI if you'd ask me.
Re: Meta convinces Blue Owl to cut $30B check for its Hyperion AI super cluster
#29Are 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 c…
It’s complicated.
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
Re: Meta convinces Blue Owl to cut $30B check for its Hyperion AI super cluster
#30Earlier quoted context omitted.
Seems like a stable investment with returns locked in through 2049 unless Facebook defaults.
2049... 20 years. So what exactly is being funded? Just the infra? Walls, power grid, cooling, security cameras and such. Or is any part of this the servers? Is there need for more money in say 2039?
They probably used some of the money for this: https://www.nextplatform.com/2025/10/02/meta-buys-rivos-to-a...