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
#2Would love to see the business plan that convinced Blue Owl to sink that much money.
Or maybe they’re ok with the collateral on offer.
Re: Meta convinces Blue Owl to cut $30B check for its Hyperion AI super cluster
#3Would love to see the business plan that convinced Blue Owl to sink that much money. Or maybe they’re ok with the collateral on offer.
$30B ... 2GW datacenter ... ??? ... AGI
Re: Meta convinces Blue Owl to cut $30B check for its Hyperion AI super cluster
#4Would love to see the business plan that convinced Blue Owl to sink that much money. Or maybe they’re ok with the collateral on offer.
Too much money chasing too few investment opportunities with large potential returns. Risk really isn't being acknowledged these days.
Re: Meta convinces Blue Owl to cut $30B check for its Hyperion AI super cluster
#5Would love to see the business plan that convinced Blue Owl to sink that much money. Or maybe they’re ok with the collateral on offer.
$30B ... 2GW datacenter ... ??? ... AGI
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?
Re: Meta convinces Blue Owl to cut $30B check for its Hyperion AI super cluster
#6Debt financed. Who is loaning money to these things? I feel there must be an other level of bubble there...
Re: Meta convinces Blue Owl to cut $30B check for its Hyperion AI super cluster
#7This 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.
Re: Meta convinces Blue Owl to cut $30B check for its Hyperion AI super cluster
#8Is there enough power in the nearby parishes to supply 2.2GW? Also - will there be enough skilled labor?
Re: Meta convinces Blue Owl to cut $30B check for its Hyperion AI super cluster
#9Would love to see the business plan that convinced Blue Owl to sink that much money. Or maybe they’re ok with the collateral on offer.
The way the recent deals have been structured is that the capacity and thus revenue is pre-booked, which upgrades the credit quality in the eyes of the lenders. Blue Owl is private equity, so they are likely loading the special purpose vehicle itself with the debt (in a way that it off Meta's balance sheet, which is the primary objective), and then possibly funding the capital outlay through secondary markets (if not now, then perhaps later they can bundle it up and sell it - it's Meta adjacent so they will have no problem selling on that debt).
If Blue Owl is providing capital for an equity slice, they get huge leverage on their cut baked into the deal. Pension funds that may end up buying debt in the deal eventually don't want to actually fund the equity of the project and take the risk booting it all up while sitting at the front of the capital stack with corresponding risk of getting wiped out (even if it's a Meta partnership), they simply want securitized fixed income, and make it as vanilla as possible.
So the question is more "will Private Credit (or pension funds/institutions) take debt backed by datacenter collateral with long term service agreements with Meta" and the answer is yes. There is much lower quality stuff than that in the PC space.
Re: Meta convinces Blue Owl to cut $30B check for its Hyperion AI super cluster
#10Are 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.