Ares Management Corp. is avoiding financing high-performance processors that run high-end AI models and instead investing in data centers that host these chips. A person familiar with the matter said that the asset management agency is worried that if it invests in GPUs, it may be locked down, and its assets will face elimination soon after launch. The person requested anonymity because the information was not disclosed. Speaking about data center financing and GPU chip financing on an analyst conference call on Thursday, CEO Michael Arougheti said, “Frankly speaking, data center projects are simpler to do due diligence, and the relative benefits are also very attractive.” He added that it's not about denying the GPU financing business; it's just that investment opportunities in data centers and supporting power infrastructure are more appealing to them. According to Arougheti, the data center financing market is huge, and the amount that can be invested is relatively limited. The company estimates that the AI sector's capital expenditure requirements are about 5 trillion US dollars, of which about 2 trillion US dollars will be used to build physical AI computer rooms and supporting infrastructure, and 3 trillion US dollars will be used to purchase GPU chips. Arougheti said during the earnings call that he was unable to conduct a due diligence assessment of the value decay and depreciation curves of such technology. He said, “At least at this stage, we are choosing to deeply cultivate the half of the market we are most familiar with and have accumulated the most ability.”
Zhitongcaijing · 2d ago
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Ares Management Corp. is avoiding financing high-performance processors that run high-end AI models and instead investing in data centers that host these chips. A person familiar with the matter said that the asset management agency is worried that if it invests in GPUs, it may be locked down, and its assets will face elimination soon after launch. The person requested anonymity because the information was not disclosed. Speaking about data center financing and GPU chip financing on an analyst conference call on Thursday, CEO Michael Arougheti said, “Frankly speaking, data center projects are simpler to do due diligence, and the relative benefits are also very attractive.” He added that it's not about denying the GPU financing business; it's just that investment opportunities in data centers and supporting power infrastructure are more appealing to them. According to Arougheti, the data center financing market is huge, and the amount that can be invested is relatively limited. The company estimates that the AI sector's capital expenditure requirements are about 5 trillion US dollars, of which about 2 trillion US dollars will be used to build physical AI computer rooms and supporting infrastructure, and 3 trillion US dollars will be used to purchase GPU chips. Arougheti said during the earnings call that he was unable to conduct a due diligence assessment of the value decay and depreciation curves of such technology. He said, “At least at this stage, we are choosing to deeply cultivate the half of the market we are most familiar with and have accumulated the most ability.”
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