Ares Management Avoids AI Chip Financing Over Obsolescence Risk

Ares's caution puts a spotlight on the collateral question at the heart of the AI buildout: chips depreciate fast, while the buildings around them do not. By favoring the real estate over the silicon, the firm is effectively treating GPU financing as a technology-cycle bet rather than a credit trade, a stance that could influence how other lenders structure exposure to AI infrastructure. The open question is whether this wariness spreads as lenders weigh collateral that may lose value well before a loan matures.