K8 unveils $250M prepayment facility to finance AI compute contract deposits
Saul_Loveman · x · 2026-10-07
Coming from credit into compute, the team noticed AI companies sign 3-year compute contracts with 20-30% down payments funded from freshly raised equity — the fastest-growing industry paying for its most important input with its most expensive capital. K8 announced a $250M prepayment facility: buyers finance the deposit against the contract, with every draw verified before funding. Oil producers have borrowed against forward sales for decades; compute couldn't for lack of standard contracts and pricing. This is the first such structure, not the last.
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