One $IREN customer agreed to cover 90% of the GPU bill upfront on a 5 year deal. In August, $IREN was reporting 45-55% on recent deals.
If more customers get close to covering 100%, that's a huge part of financing risk off the table for neoclouds. They'd need to borrow a lot less to buy GPUs. They still have to fund the data center and turn commitments into revenue.
I'm still super bullish on $NBIS . About 70% of its Q2 deals included upfront payments, and those payments covered 50-60% of the associated capex. If Nebius can get non-hyperscaler customers to cover even more upfront, it can build more capacity with less debt and less dilution which they're already trying to minimize.
If more customers get close to covering 100%, that's a huge part of financing risk off the table for neoclouds. They'd need to borrow a lot less to buy GPUs. They still have to fund the data center and turn commitments into revenue.
I'm still super bullish on $NBIS . About 70% of its Q2 deals included upfront payments, and those payments covered 50-60% of the associated capex. If Nebius can get non-hyperscaler customers to cover even more upfront, it can build more capacity with less debt and less dilution which they're already trying to minimize.