Tiwari: GPU Debt Structures Amortize to Zero Over 4–5 Years With No Balloon Payment
Neil Tiwari · Who's Actually Funding the AI Buildout? · Feb 26, 2026 · at 10:11
Neil Tiwari of Magnetar Capital breaks down the amortization and payback timelines of AI compute debt financing.
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“And in these structures, typically the payback period on the capex was roughly two to three years. And the structures themselves, the debt was over five years, you know, four to five years in length where the entire debt amortized during the outstanding period that the debt was out. And so at the end, you ended up with zero balance for the debt and there was no balloon payment or anything that was really due on the back end.”
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