# Compute access may require startups to raise far more capital

Markdown copy of https://realalpha.app/s/compute-access-may-require-startups-to-raise-far-more/ on Real Alpha, the best minutes from long interviews with the people building AI. Cite and link the page, not this copy.

- Speaker: [Evan Conrad](https://realalpha.app/builders/evan-conrad/) · Evan Conrad is co-founder and CEO of SF Compute. · Founded SF Compute, a GPU cluster exchange where buyers can resell unused compute time on contracts they can exit.
- Host: [Theo Jaffee](https://realalpha.app/people/theo-jaffee/) · Co-founder & host, MTS · One of the first members of a16z's new media team; earlier hosted the Emergent Ventures-backed Theo Jaffee Podcast.
- Host: [Sophia Dew](https://realalpha.app/people/sophia-dew/) · Host, MTS
- Show: MTS
- Episode: [AI Startups Locked Out of Compute in 6 Months | Evan Conrad](https://realalpha.app/v/I2UR4asz-RE/), Oct 28, 2026
- Moment: 10:20 to 12:36 of the episode (2 min), playing on https://realalpha.app/s/compute-access-may-require-startups-to-raise-far-more/; the episode from there: https://realalpha.app/v/I2UR4asz-RE/?t=620

## Quote

> “I think you should try and **raise like a billion dollars**.”
> — [Evan Conrad](https://realalpha.app/builders/evan-conrad/) at [11:44](https://realalpha.app/v/I2UR4asz-RE/?t=704) · MTS

## Takeaways

1. Use a creditworthy partner's balance sheet to co-sign a lease.
2. Conrad suggests raising 10x the planned round.
3. He puts the potential fundraising bar near $1 billion.

## About this segment

Evan Conrad says Series A startups should raise far more or find an investment-grade partner to co-sign compute leases. He puts the potential fundraising bar near $1 billion, a threshold that could concentrate access among the biggest firms.

From “AI Startups Locked Out of Compute in 6 Months | Evan Conrad”, Oct 28, 2026. [Watch the full episode](https://realalpha.app/v/I2UR4asz-RE/)

## Transcript

Transcribed by machine (Whisper) from the episode’s audio, so a word may be off here and there.

[10:27](https://realalpha.app/v/I2UR4asz-RE/?t=627) on to the episode. Like you said, you know, you don't believe this, but it doesn't matter what you think. It matters what lenders think. So, like, do you think that a scenario like this is possible because, like, lenders will just freak out? So, right now, lenders are freaking out um i hope that the anthropic um s1 like calms a lot of people down because i think a lot of people were basing up things off of just like incorrect information um and so hopefully that changes things um but at least where we stand right now it is hard to get debt which then ripples through the whole economy and it's not good for startups so if you're a startup raising a series a right now like what would you do i would raise as much money as i can um i would raise um i would take your round and i would add 10x to it um and if i was an investor i would buy

[11:20](https://realalpha.app/v/I2UR4asz-RE/?t=680) compute instead um i would yeah basically i would either try to find a big investment grade normal company that i can either partner with or sell to um in some cases um and use their balance sheet to co-sign on the lease with me so I get investment grade credit or I would try to raise the biggest round I possibly can and so I'm above the bar. What do you think the bar is now? Like a billion dollars.

[11:51](https://realalpha.app/v/I2UR4asz-RE/?t=711) Like if you're trying to raise a round I think you should try and raise like a billion dollars. It depends on your industry obviously. That sounds like, you know, kind of like... Oh, you know, why didn't I think about raising a billion dollar round? I know. That's the problem. This is what I'm saying. This is why the article is called End of Startups, is because I don't think many people can raise a billion dollar round.

[12:11](https://realalpha.app/v/I2UR4asz-RE/?t=731) I think that's extremely difficult to do. And the ones that you see are the ones that are like playing with red dots. It's just survivorship bias. I think that in general, if you don't fix the debt problem, most of the portfolios of various venture firms are going to consolidate or get wiped out