Erik says hardware ownership creates financing challenges: equity financing can be dilutive, and debt typically requires predictable long-term revenue to cover interest.

“Like, you have to, you know, deal with vendors and suppliers and, and, you know, power and, and, and cables and, and all kinds of stuff. But there's also, you know, financial complexity to it. Like, how do you fund it?”

“Like, should you raise equity, you know? And, and you can raise a billion dollars and, and go buy hardware for it. That's a very diluted way to do it.”

“Um, you can raise debt, but, you know, if you raise debt, you know, you, you typically wanna have, like, locked in long-term revenue to, to, to pay the interest rates. So that's also not trivial.”