Tiwari: AI Compute Debt Uses Customer Cash Flows, Not GPUs, as Primary Collateral
Neil Tiwari · Who's Actually Funding the AI Buildout? · Feb 26, 2026 · at 9:32
Neil Tiwari, partner at Magnetar Capital, explains the collateral structure behind multi-billion-dollar GPU debt facilities.
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“And I think what got missed was the GPUs themselves were actually like the second, second or tertiary level of collateral in those instruments. The primary collateral was the contracted cash flows from investment grade counterparties.”
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