AI Financing | Wrapping the Depreciation

A $35bn vendor-wrapped SPV imports the data-center financing playbook onto depreciating silicon. The price stack says no one underwrites TPU residuals on their own — and the depreciation risk has been routed, not removed.

Each new deal in the channel adds vendor-balance-sheet concentration to a risk — silicon depreciation — that the structure has been built specifically not to price. The wrapper has not removed the depreciation. It has wrapped it, tranched it, and shipped it down the capital structure and out into the insurance system. Knowing where it landed is the whole of the trade.

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