USD.AI, the financing platform for AI compute assets, and BSQ Capital Partners, a Singapore-headquartered alternative asset manager focused on ‘next-generation’ digital infrastructure, recently announced an initial allocation of US$ 300 million in scalable GPU-backed financings across the Asia Pacific region to be provided via their joint venture, according to USD.AI’s press release.
The financing will comprise senior secured term loans collateralized by first-priority security over GPUs and their contractual cashflows, targetted at operators of AI compute infrastructure across the region.
Under the JV, BSQ Capital Partners will act as investment manager, originating and managing transactions in key markets like Australia, Japan, South Korea, Southeast Asia, and India. USD.AI will provide financing capital alongside its programmatic underwriting platform and technology, which converts high-performance compute hardware into financeable collateral and enables faster and simpler execution as compared to traditional lenders.
The Asia-Pacific region is one of the largest sources of new AI compute demand, driven by sovereign AI initiatives, cloud expansion and a growing number of independent compute operators. Many of these operators hold high-value GPU fleets but face limited financing options from banks that lack the platform to underwrite compute hardware as collateral and move at the speed required to meet demand.
The joint venture is designed to close that gap with institutional capital and specialized underwriting purpose-built for the asset class, the statement said.
“Asia-Pacific’s AI compute buildout is moving faster than traditional financiers can respond. Operators leading this wave require financing partners with domain expertise and the underwriting capability to structure, price, and close with conviction,” said David Woo, Co-Founder and Partner of BSQ Capital Partners. “This joint venture pairs BSQ’s regional origination and underwriting capabilities with USD.AI’s purpose-built financing platform, giving operators access to institutional capital at the speed their businesses require.”
The BSQ team formerly worked at various financial institutions including Goldman Sachs, Lone Star Funds, Fortress Investment Group, and BPEA.
Conor Moore, COO and Co-Founder of Permian Labs, developer of USD.AI said: “GPUs are among the most productive assets of this decade, and they should be financeable as such. BSQ is the ideal partner to extend our financing model across Asia-Pacific: a regulated, specialist manager with deep local relationships and a shared conviction in the AI infrastructure build-out. Together, we can channel global capital to the operators building the region’s compute backbone.”