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evan conrad on X: "What SF Compute does. When you finance a GPU cluster, you need to get an "offtake" agreement. Basically, someone has to agree to rent the cluster from you, typically for a 3+ year period. If that agreement falls through (the person fails to pay), then the person who owns the" / X

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To view keyboard shortcuts, press question mark View keyboard shortcuts Post See new posts Conversation evan conrad @evanjconrad What SF Compute does. When you finance a GPU cluster, you need to get an "offtake" agreement. Basically, someone has to agree to rent the cluster from you, typically for a 3+ year period. If that agreement falls through (the person fails to pay), then the person who owns the cluster gets wiped out, and their lender ends up with a bunch of GPUs, rather than say, money. It really looks like the world is deploying more capital into the AI build out than any infrastructure project in the history of the world. You remember when people said there was going to be a Manhattan project for AI? The current build out is the size of 20 Manhattan projects. We’re so far past the Manhattan project it’s not even funny. This is the cost of a war. It would be really bad if that scale of capital was secured against offtake agreements (long term contracts) with application la

evan conrad @evanjconrad What SF Compute does. When you finance a GPU cluster, you need to get an "offtake" agreement. Basically, someone has to agree to rent the cluster from you, typically for a 3+ year period. If that agreement falls through (the person fails to pay), then the person who owns the cluster gets wiped out, and their lender ends up with a bunch of GPUs, rather than say, money. It really looks like the world is deploying more capital into the AI build out than any infrastructure project in the history of the world. You remember when people said there was going to be a Manhattan

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