Analysis · Pricing · 4 min read
Fixed or floating? Why GPU loans now come with fixed-rate tranches
Until 2025 almost every GPU loan was floating rate. In 2026 fixed-rate options appeared in most of the large deals. The reason is simple: the revenue was always fixed.
- 01CoreWeave's DDTL 4.0 offered Treasuries + 2.00% alongside SOFR + 2.25%.
- 02IREN paired a SOFR + 2.50% loan with up to US$2.1bn of 5.96% notes; Nscale split Ward County into fixed and floating tranches.
- 03Fixed rates bring in new investors, but make prepayment terms matter more.
A GPU capacity contract pays a fixed monthly fee. A floating-rate loan charges interest that moves with SOFR. Put the two together and the borrower carries an interest rate mismatch for the life of the loan. In the early deals that was handled, if at all, with hedging covenants. In 2026 lenders and borrowers started to fix the rate inside the financing itself.
Three ways to fix the rate
- A fixed option in the loan. CoreWeave's DDTL 4.0 lets draws price at Treasuries + 2.00% instead of SOFR + 2.25%. Nscale's US loans price at 2.375% over either SOFR or the swap rate, and at Ward County US$630m of the US$1.85bn is fixed.
- Notes alongside the loan. IREN's Hardware 3 financing pairs a US$1.545bn delayed-draw loan with up to US$2.1bn of 5.96% notes, sharing one security package under a common terms agreement.
- A fully fixed loan. Lambda's US$1.008bn Compute I facility is fixed rate throughout. IREN's Mackenzie loan from Blue Owl and Pimco is 9.0% fixed, and Sharon AI's Goldman Sachs facility is 9.95% fixed.
Fixed-rate elements in 2026 GPU financings
| Facility | Fixed-rate element | Floating element |
|---|---|---|
| CoreWeave DDTL 4.0 · Mar 2026 | Option at Treasuries + 2.00% | SOFR + 2.25% |
| IREN Hardware 3 · May 2026 | Up to US$2.1bn 5.96% notes | US$1.545bn DDTL at SOFR + 2.50% |
| Nscale Ward County · Aug 2026 | US$630m at swap rate + 2.375% | US$1,220m at SOFR + 2.375% |
| Nscale North Carolina · Aug 2026 | Swap rate + 2.375% | SOFR + 2.375% |
| IREN Mackenzie · Aug 2026 | US$2.4bn at 9.0% fixed | None |
| Lambda Compute I · Oct 2026 | US$1.008bn fixed rate (not disclosed) | None |
| Sharon AI SPV · Oct 2026 | US$356m at 9.95% fixed | None |
Why it matters beyond the rate
Fixed-rate paper suits a different investor base. Insurers and private placement investors buy long-dated fixed-rate debt and are more comfortable with rated, contracted cash flows. IREN's notes and Lambda's rated fixed-rate loan show that buyer base arriving in compute.
A fixed rate also changes the prepayment conversation. GPU loans prepay more often than most project financings: cash traps turn into mandatory prepayments after six months in the Nscale and IREN structures, and contract terminations and remarketing proceeds are usually applied to the loan. Each of those events raises the question of who pays the cost of breaking the fixed rate.
Questions for the next term sheet
- Do make-whole or breakage costs apply to mandatory prepayments from cash traps, terminations or asset sales?
- If fixed and floating lenders share security, how does the intercreditor deal with hedging and make-whole claims?
- Is the borrower required to hedge any floating tranche, and to what percentage of the debt?
- Does the fixed tranche amortise on the same profile as the contract revenue?
For in-house counsel
Take it to the documents
The filed wording behind this piece, for the lender’s or the borrower’s side. Previews are open; the full text is free with InfraCompute Weekly.
- GPU loan summariesFiled GPU credit agreements side by side: advance rates, covenants and the collateral package.
- Financing clause libraryCash traps, coverage ratios, cures, step-in and GPU security, quoted from credit agreements and indentures.
- Issues list: GPU credit agreementBuild it from the lender’s or the borrower’s side, with where filed deals land.
- The legal desk for in-house counselContract library, issues lists, checklists and English law notes.
Sources
- CoreWeave DDTL 4.0: pulse2.com
- IREN Hardware 3: SEC filing: sec.gov
- Nscale US loans: runtimewire.com
- IREN Mackenzie: SEC filing: sec.gov
- Lambda Compute I: lambda.ai
- Sharon AI SPV: dealroom.co
