A post warns against treating different AI cash flows alike
The critique contrasts 10-year contracts to buy compute with one-year software contracts for AI inference, arguing that cash flows shouldn't substitute for scrutiny of the underlying asset.
TLDR
One post argues that few cash flows warrant underwriting, especially when evaluating them becomes a way to avoid assessing the underlying asset. It cautions against conflating 10-year compute purchase contracts with one-year software contracts for inference—running AI models. In the author's view, only two levers matter: improving the asset's residual value or strengthening credit protection.
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2 Sources, first seen 19d ago