GPU Neoclouds Run on Airline Economics, Argues Ex-ABS Trader Alex Song
BenBajarin · x · 2026-10-28
Alex Song, a former Wall St ABS trader who structured $2B+ in debt financings, argues GPU neoclouds operate on airline economics and their debt resembles aircraft engine ABS: perishable inventory (idle H100 hours), 85%+ fixed costs, breakeven utilization at 65-75%, NVIDIA as the Boeing/Airbus OEM taking the surplus, and powered shells/grid interconnects as the scarce constraint. Private credit has poured billions into CoreWeave, Lambda, and Crusoe. Ben Bajarin amplified it, noting compute carries the most transformative yet dangerous technology.
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