Wall Street’s AI bet: Own the infrastructure, collect the rent
Jenna Larson has been reporting on the Fargo region for over 15 years. She graduated from North Dakota State University and began her career at The Forum of Fargo-Moorhead before joining the Bison Current network. Jenna's focus is on community events, local initiatives, and the stories that make Fargo unique.
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By Arasu Kannagi Basil and Manya Saini Oct 29 (Reuters) Wall Street s top alternative asset managers are betting on the AI boom by owning the infrastructure behind it and locking in rent through long-term leases. With concerns growing that debt-laden neocloud companies at the heart of the AI infrastructure boom could default and that massive spending on the sector may fail to deliver adequate returns, industry executives are also emphasizing their focus on high-quality, long-term tenants. Blue Owl Co-CEO Marc Lipschultz said the company owns physical infrastructure critical to the growth of the digital economy. We typically lease it out for 15 to 20 years with annual rent escalators, creating a highly predictable and growing stream of rental income for our investors, Lipschultz said, adding Blue Owl focuses on limiting risks including those tied to short-term leases and token pricing. Shares of alternative asset managers rose on Thursday, with Blue Owl up 6.5% and Ares Manageme