Private credit giant Blue Owl Capital announced Tuesday it has finalized a $2.4 billion financing package to ensure cloud computing provider Iren Ltd. does not have to put its new Blackwell Ultra GPUs back on the shelf.
The massive debt facility will allow Iren to complete its transaction for the coveted Nvidia hardware, which the company intends to plug into a Canadian data center and hope generates enough artificial intelligence to make the monthly minimum payments. Market watchers noted the deal highlights a growing trend of private equity firms stepping in to provide payday loans for enterprise server racks.
We view this as a standard layaway program for basic computer parts. Iren simply selected the GPUs they wanted, and we provided the multi-billion-dollar, high-yield bridge loan necessary to get them past the Nvidia checkout page without their card declining.
Under the terms of the agreement, Blue Owl holds the right to repossess the graphics cards, power supply units, and any cooling fans if Iren defaults on the debt. The $2.4 billion principal will reportedly cover the exact cost of the Blackwell Ultra chips, expedited international shipping, and a mandatory two-year extended hardware warranty.
Shares of Iren dipped slightly on the news, while Nvidia quietly processed the multi-billion-dollar wire transfer. Wall Street analysts expect Blue Owl to return to the debt markets next quarter to structure an additional $800 million mezzanine facility, which Iren will use to cover the cost of the necessary connecting cables.