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    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.

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    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.

    Combined views

    9.7K

    2 Sources, first seen 19d ago

    Combined views

    9.7K

    2 Sources, first seen 19d ago

    72 likes
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    19d ago
    first seen 19d ago
    72 likes
    5 comments
    62 saves
    8 reposts

    Sentiment

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    5 comments
    62 saves
    8 reposts

    Sentiment

    Positive——Negative

    Summary

    Not enough discussion yet.

    No sentiment analysis available yet.

    2 Sources

    @brexton100%. Few cashflows are worthy of being underwritten, especially if it's for the purpose of avoiding underwriting the actual "thing" or asset What makes it worse is people conflate different types of cashflows (ie 10 year offtake contracts for compute vs 1 year software contracts for inference) Only two toggles matter: residual value enhancement or credit enhancement. Everything else is a distraction PS "investment grade" is binary. There is no such thing as a "blue chip" late stage AI company in the eyes of the Capital Market Gods
    @evanjconradRT @brexton: 100%. Few cashflows are worthy of being underwritten, especially if it's for the purpose of avoiding underwriting the actual "…

    2 Sources

    @brexton100%. Few cashflows are worthy of being underwritten, especially if it's for the purpose of avoiding underwriting the actual "thing" or asset What makes it worse is people conflate different types of cashflows (ie 10 year offtake contracts for compute vs 1 year software contracts for inference) Only two toggles matter: residual value enhancement or credit enhancement. Everything else is a distraction PS "investment grade" is binary. There is no such thing as a "blue chip" late stage AI company in the eyes of the Capital Market Gods
    @evanjconradRT @brexton: 100%. Few cashflows are worthy of being underwritten, especially if it's for the purpose of avoiding underwriting the actual "…