LBO firm will create a new company called Acquisition Co. ("AcqCo") and put $500K of cash into it (equity). The Blue Owl will lend $2M to AcqCo (debt). AcqCo uses the $2.5M to buy the vet clinic. AcqCo will use cash flow from vet clinic to pay Blue Owl loan interest. If AI makes vet clinic lose revenue because customers treat Fluffy's ear infection at home, then Blue Owl and LBO firm are in trouble.
So the debt isn't "pushed" and it's not risk-free as the original comment said... also not Venture Capital. Lots wrong in that comment.
Your blog article stopped at token generation... you need to continue to revenue per token. Then go even further... The revenue for AI company is a cost for the AI customer. Where is the AI customer going to get incremental profits from the cost of AI.
For short searches, the revenue per token is zero. The next step is $20 per month. For coding it's $100 per month. With the competition between Gemini, Grok, ChatGPT... it's not going higher. Maybe it goes lower since it's part of Google's playbook to give away things for free.
Yeah, I thought it was weird right away too, but brush it off as a tech blog... but then I realized it's actually a finance website. Ruins the credibility of the website instantly.
The $4B revolver will likely sit undrawn. When it gets drawn, there usually a specific plan to reduce it back to zero. It's not for building data centres, a revolver typically used just for timing differences like a credit card is used (and the lenders will be paying attention). Also, when things get bad, there are covenant triggers which would allow lenders to renegotiate.
I disagree with the J. Kenji Lopez-Alt suggestions. He is too extreme/OCD for beginners.
A much more accessible source is Harold McGee who wrote "On Food and Cooking - The Science and Lore of the Kitchen". McGee reviews the science but also some history. He also reviews some of the cooking tips your mom gave you and why they work or don't work.
So the debt isn't "pushed" and it's not risk-free as the original comment said... also not Venture Capital. Lots wrong in that comment.