The AI buildout needs more capital than backstops can cover. “There’s bank lenders, insurance lenders, they don’t want to take a lot of risk. You’ve got private equity, they want to take a lot of risk. You’ve got private credit, they’re in the middle.” “What you do is you tranche risk. If there are losses, the equity will take the loss first, then the B piece, and then part of the A2. The loss has to be so severe to affect the senior tranche, which is how you can create different risk profiles.” “We think NVIDIA has the capacity to support up to 46 gigawatts. That’s still not enough. There’s 240 gigawatts that’s gonna come in.” “The lending market has to evolve to take risks outside of backstops. It’s really the biggest question of our time.”