TLDR AI · DEEP DIVES & ANALYSIS

AI CAPEX: BUILT ON OPTIONS, PRICED AS CERTAINTY

davefriedman.substack.com6 min read

Summary from the TLDR AI newsletter

Letters of intents are real options that move markets, guide counterparties, and shape capex decisions before obligations harden. Options can be enough to pull forward tens of billions in irreversible investment. If the option doesn't convert, the stranded capital becomes a restructuring problem.