{
  "model":"aic.installation-sequencing/1",
  "release_date":"2026-10-06",
  "evidence_class":"hypothetical",
  "question":"When does the value of earlier operating capacity justify the extra bridge funding needed for parallel deployment?",
  "motivation_sources":[
    {"url":"https://lambda.ai/blog/lambda-closes-1-billion-senior-secured-fixed-rate-financing","date":"2026-10-01","use":"Company describes milestone-linked delayed draws; no model number is taken from its transaction."},
    {"url":"https://dbrs.morningstar.com/research/490455/morningstar-dbrs-assigns-credit-ratings-of-a-low-to-lambda-compute-i-llc","date":"2026-10-02","use":"Agency discusses installation exposure, draws and reserves; no private terms, rating model or cash amount is reconstructed."}
  ],
  "assumptions":[
    "Three identical projects. Each costs $40m at its chosen start, becomes ready 30 days later and receives a $32m gross project-debt draw at readiness in the base cases.",
    "The project account withholds $4m from each debt draw. Only $28m is a permitted reimbursement to the common treasury. The reserve remains an asset but cannot fund another project during the horizon.",
    "Opening unrestricted sponsor cash is $40m; all projects have the same capital structure. Net reimbursements may be pooled only in explicitly permitted cases.",
    "Parallel starts are days 0, 0, 0. Staggered starts are days 0, 30, 60. The common comparison horizon is day 90.",
    "Base cases receive net takeouts before same-day new construction payments. The costs-first case reverses that order.",
    "A committed revolving bridge fills cash shortfalls and is repaid immediately when unrestricted cash is available. Interest is simple ACT/365 at 12%, rounded up once to cents on aggregate principal-days.",
    "The 1% fee is charged on the selected committed bridge limit, not on peak usage when these differ. Both fee and interest are payable on day 90, without upfront withholding, compounding or interest-on-interest. Availability of these terms is assumed, not established.",
    "A ready project produces an assumed daily cash surplus after operating costs and project-debt carrying costs. No project-debt principal amortizes before day 90. Operating surplus is held outside common treasury until day 90, then released before bridge costs are paid.",
    "Ready-project days count [ready day, horizon), so readiness on day 90 contributes zero operating days in this comparison. This is not a measure of GPU-hours or verified useful work.",
    "The daily surplus assumptions are $10,000 or $15,000 for the main comparisons. A separate thin-equity case uses only $5m of opening cash; another leaves operating surplus unknown. No assumption is a company forecast."
  ],
  "reuse_of_prior_work":"Uses the established ordered cash-event and explicit funding-gate conventions. Existing single-project calendar and full-takeout models are unchanged; the new comparison concerns multiple deployments and early operating value.",
  "limitations":[
    "Not a Lambda facility model, market quote, credit rating or recommended trade.",
    "No guarantee that all three projects can physically be built in parallel, that acceptance occurs on schedule or that the assumed takeout/refinancing and pooling rights are available.",
    "No new equity is silently added; insufficient bridge capacity, prohibited rights or inability to repay at the horizon do not produce a funded ledger.",
    "The horizon cash comparison excludes post-day-90 operating outcomes, technology changes, taxes, terminal values and discounting; it is not total-project NPV or an optimal schedule.",
    "If operating cash can be used earlier, fees must be prepaid, project principal amortizes earlier or reserves are released, those are different cash paths requiring a revised model. Negative operating cash flows are outside this positive-surplus illustration and are rejected, not silently deferred or financed."
  ]
}