Patel says commercial real estate investors now finance GPU clusters at 12% interest rates like standard real estate.
“Like literally real estate investors, commercial real estate investors are doing notes for GPU clusters at like 12% interest rates which is just like it's like standard commercial real estate now.”
Patel predicts Google and Amazon will take on debt for AI infrastructure following Meta's example.
“Google and Amazon haven't taken on debt yet for AI infrastructure, but they will. Right?”
Patel argues hyperscalers would pay 8% interest rates versus current 5-6% given AI compute returns.
“Meta's raised at, like, 5% to 6%. I don't see why they wouldn't pay 8% Because they would happily pay 8% because the return from the compute that they're going to build is humongous.”
Patel questions where $3-4 trillion in CapEx will come from for 2028 AI infrastructure buildout.
“So if you're at 3 or $4,000,000,000,000 of CapEx, where does all this cash come from?”