00:52:44 · John Coogan, Jordi Hays, Healey Cypher
[00:52:44] S0: To power the AI era. With the [00:52:46] S1: golden age of being, the golden electrician age where you [00:52:51] S0: get blown around in [00:52:52] S1: private jets to different data centers. [00:52:54] S0: Yeah. You do. You do. That's right. So $40,000,000,000 investment, thousands of new jobs. That feels like a higher ratio than what what was the other example you kept quoting? Something like 500 jobs for some anthropic Yeah. [00:53:07] S1: It was [00:53:07] S0: data center or something? [00:53:08] S1: It was the anthropic data center. They were like, we're investing $50,000,000,000 How many jobs did you create? [00:53:13] S0: Twenty twenty jobs. It was I mean, that's not like goal of this stuff. 800. The jobs should not necessarily be created in the data center. [00:53:19] S3: No. I [00:53:19] S1: I I just brought I I just always brought that up because you have to understand what people outside of tech, their reaction Totally. To Oh, great. You're investing $50,000,000,000 yeah. In some cases, this doesn't create jobs. A good article in the journal on on BlueOut as well. I think it also ties into Abilene, Texas. Yeah. Might might be a good moment to to cover some of this. Yeah. Pull it up. In the journal yesterday, Wall Street blows past bubble worries. Oh, yeah. It's a supercharged AI spending frenzy. And they say firms such as Blue Owl Capital have raised trillions in investing firepower. The AI build out is a perfect match. The warning signs are flashing. Not long ago
00:53:19 · Jordi Hays, John Coogan
[00:53:19] S1: I I just brought I I just always brought that up because you have to understand what people outside of tech, their reaction Totally. To Oh, great. You're investing $50,000,000,000 yeah. In some cases, this doesn't create jobs. A good article in the journal on on BlueOut as well. I think it also ties into Abilene, Texas. Yeah. Might might be a good moment to to cover some of this. Yeah. Pull it up. In the journal yesterday, Wall Street blows past bubble worries. Oh, yeah. It's a supercharged AI spending frenzy. And they say firms such as Blue Owl Capital have raised trillions in investing firepower. The AI build out is a perfect match. The warning signs are flashing. Not long ago [00:54:05] S0: have better PR or worse PR than Ares? Because they seem to be they seem to be quickly becoming, like, the main name that everyone knows in private credit. And to my knowledge, like, they are not the only firm in the category, and yet they are the ones that that if you need an example, you bring you you pull Blue Owl off the shelf. Think it's [00:54:29] S1: a strong brand. [00:54:30] S0: It is a strong brand. [00:54:32] S1: They have the.com. They have blueowl.com. [00:54:35] S0: Blueowl.com.
00:54:35 · John Coogan, Jordi Hays, Luca Ferrari
[00:54:35] S0: Blueowl.com. [00:54:38] S1: Not long ago, Blue Owl Capital was an upstart investment firm that lent money to mid sized US companies such as Sara Lee Frozen Bakery. Woah. These days, the firm is financing massive data centers costing tens of billions of dollars for the likes of Meta and Oracle, a sign of just how quickly Wall Street has become the enabler of America's AI boom. Fund managers such as Blue Owl amass trillions of dollars in investing firepower and have been hunting for big deals where they can put that money to work. They found slim pickings for years until a perfect match appeared in AI, which has provided a bigger target than anything in history due to the vast sums tech companies need to ramp up computing power. We're talking about numbers that are so large even in the low cases, said Blue founder, co founder, Mark Lip Schulz. [00:55:21] S5: Lip Schulz. [00:55:22] S1: Lip Schulz. Does it even matter if you keep counting after you get to 1,000,000,000,000 of capital expenditure in the next couple years? [00:55:30] S0: This is insane. You [00:55:33] S1: Does it even matter? [00:55:34] S0: You really undersold this. [00:55:35] S1: Does it even matter? [00:55:36] S0: You told me you read this, I was like, is it good? You were like, it was okay. [00:55:38] S1: There's there's one moment that's good. [00:55:40] S0: No. There's another one I saw. I scrolled down.
00:55:40 · John Coogan, Jordi Hays
[00:55:40] S0: No. There's another one I saw. I scrolled down. [00:55:42] S1: Last week's sell off in tech related stocks and bonds marked some of the most serious warning signs that the frenzy could be overdone. But any worries on Wall Street about a possible investment bubble have largely been trumped by the fear of being left behind. Lip Schulz and co founder Doug Ostrover jumped into the fray at a posh retreat in California's Ohio Valley for dozens of tech VIPs and celebrities in the 2024. Meta CEO, Mark Zuckerberg, and Satya Nadella were there along with Farrell Williams and Serena Williams, The Blue Owl duo duo of Wall Street superstars who built the firm into a 295,000,000,000 fund manager in ten years by perfectly timing a surge in private lending looked like just two money men in office sneakers and fleece vests. But the billionaire co owners of a professional hockey team who have talked about skating where the puck is going. [00:56:31] S0: It's awesome that they Seize [00:56:32] S1: the opportunity to get [00:56:33] S0: in They built this firm huge. They make billions of dollars, they're like, let's let's get a hockey team. Wanna go fifty fifty? [00:56:40] S1: Let's Tyler, what what hockey team do they own? Can you find that out? [00:56:44] S0: But the next line is is with the one I was laughing at.
00:56:44 · John Coogan, Jordi Hays, Tyler
[00:56:44] S0: But the next line is is with the one I was laughing at. [00:56:47] S1: This While David Getta DJ, the Blue Owl executives cut a deal to acquire IPI Partners, an investment firm that owned and operated big data centers for Amazon and Microsoft. Blue Owl already had close ties with the organizer of The Treat, Iconic Capital, which manages the personal fortunes of Silicon Valley Elite, including Zuckerberg, and was a part owner of IPI. [00:57:08] S0: Okay. Let's go to Tyler. [00:57:09] S2: They own the Tampa Bay Lightning. [00:57:11] S0: Do they spend a lot of time [00:57:13] S1: in Tampa Bay? Is that a is that like a an a NHL team? [00:57:18] S0: Yes. NHL team in Florida. That feels like an odd [00:57:23] S1: That's gotta be I mean [00:57:24] S0: I feel like Tampa is [00:57:25] S1: Just trying to keep the ice. [00:57:26] S0: I feel like a lot of the hedge fund guys, they're on the other side of the peninsula. Right? Like, aren't they in, the Key West and Mar A Lago area or Palm Beach or Miami? Like, see or maybe they just fly in and out. Like, I don't know. It's just it's just it feels like I would I would love to know more about how they selected that particular team and that sport even.
00:57:47 · Jordi Hays, Luca Ferrari
[00:57:47] S1: Yeah. The purchase gave BlueOwl a seat at the table to bid on mega AI financing. Let's give it up for mega AI Not long after, it got arranged it got picked to arrange a $14,000,000,000 package for an Oracle and OpenAI data center in Abilene, Texas. Then last month, BlueOwl raised about 30,000,000,000 to build an AI data center for Meta in Louisiana, putting in 3,000,000,000 of its client's money and borrowing the rest. So the the lender is is is borrowing in addition to their LP's dollars. The deal included a provision considered extraordinary on Wall Street giving Blue Owl's equity investment a debt like guarantee in case the partnership falls apart, showing the new financial wizardry bankers are conjuring to meet AI's ravenous financial demand. Let's give it up for financial wizardry. We love wizardry. Spreading the risk. Silicon Valley's biggest players are flushed with cash and are able to fund much of the initial AI build out from their own coffers. As the dollar figures climb ever higher, they're turning to debt and private equity, spreading the risk and potential rewards more broadly across the economy. Some of the financing is coming from plain vanilla corporate bond sales, but financiers are making far bigger fees off giant private deals. Virtually every Wall Street player is angling to get a piece of the action from banks such as JPMorgan and Morgan Stanley to traditional asset managers like BlackRock. [00:59:10] S5: Before we go