Wall Street’s top alternative asset managers are betting on the AI boom by owning the infrastructure behind it and locking in rent through long-term leases.
\n\nWith concerns growing that debt-laden neocloud companies at the heart of the AI infrastructure boom could default and that massive spending on the sector may fail to deliver adequate returns, industry executives are also emphasizing their focus on high-quality, long-term tenants.
\n\nBlue Owl Co-CEO Marc Lipschultz said the company owns physical infrastructure critical to the growth of the digital economy.
\n\n”We typically lease it out for 15 to 20 years with annual rent escalators, creating a highly predictable and growing stream of rental income for our investors,” Lipschultz said, adding Blue Owl focuses on limiting risks including those tied to short-term leases and token pricing.
\n\nShares of alternative asset managers rose on Thursday, with Blue Owl up 6.5% and Ares Management gaining 2%. KKR and Blackstone each rose 2.5%, while Apollo Global gained 3.7%.
\n\nData centers have become a critical part of the AI boom, housing the servers and computing equipment needed to train and run AI models.
\n\nAs the world’s biggest technology companies race to expand computing capacity, demand for such facilities has surged…
Original source: https://www.cnbctv18.com/technology/
