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Ares Management CEO Michael Arougheti said the company is avoiding financing the high-performance processors that run high-end AI models, and is instead investing in the data centers that house those chips. He said due diligence on data center projects is simpler, the relative returns are attractive, and it is impossible to conduct due diligence to assess the value decay and depreciation curves of GPU technology. The company estimates AI capital expenditure demand at about $5 trillion, of which about $2 trillion is for physical AI computer rooms and supporting infrastructure, and $3 trillion is for purchasing GPU chips.
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Oct 30
Sina Tech
Ares CEO Says It Avoids AI Chip Financing Due to Business Complexity
Ares Management CEO Michael Arougheti said the company is avoiding financing the high-performance processors that run advanced AI models, and is instead investing in the data centers that house those chips. He said due diligence on data center projects is simpler, relative returns are attractive, and it is impossible to conduct due diligence to assess the value decay and depreciation curves of GPU technology. The company estimates AI capital expenditure demand at about $5 trillion, of which about $2 trillion is for physical AI data centers and supporting infrastructure, and $3 trillion is for purchasing GPU chips.