Commitments and Contingencies
Commitments
Lease Commitments
As of December 31, 2025, the Company had various fixed and variable lease payment obligations associated with the TTU Lease, and in 2025, the Company entered into a lease agreement with MPS through which the Company will be subject to fixed lease payments once the lease commences. See Note 8, Leases, for additional information.
Surety Bonds
In the course of business, we are required to provide financial commitments in the form of surety bonds to third parties as a guarantee of our performance on and our compliance with certain obligations. If we were to fail to perform or comply with these obligations, any draws upon surety bonds issued on our behalf would then trigger our payment obligation to the surety bond issuer. We have outstanding surety bonds issued for our benefit of approximately $31,810 as of December 31, 2025.
Unconditional Purchase Obligations
For the period from January 10, 2025 (Inception) through December 31, 2025, the Company entered into unrecognized commitments that require the future purchase of goods or services (“unconditional purchase obligations”). The Company’s unconditional purchase obligations primarily relate to long lead time equipment purchases and vary by vendor. Future payments under unconditional purchase obligations as of December 31, 2025 are as follows:
| | | | | | | | |
| Years Ending December 31, | | Payments by Year |
| 2026 | | $ | 65,880 | |
| 2027 | | 56,730 | |
| 2028 | | 32,940 | |
| 2029 | | — | |
| 2030 | | — | |
| Thereafter | | — | |
Total unconditional purchase obligations | | $ | 155,550 | |
Contingencies
Legal Contingencies
In the ordinary course of business, we may become party to various legal actions that are routine in nature and incidental to the operation of the business. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred, and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. As of December 31, 2025, we are not aware of any matters that are expected to have a material adverse effect on our business, financial position, results of operations, or cash flows, and therefore we have not accrued any material losses related to such matters.
Contingent Consideration
As part of the Firebird Acquisition, the Company also assumed the obligation to pay NPI to the Seller. Under the NPI, the Company is liable to pay a portion of 2.5% of net operating income from the first 1,000 MW of installed dispatchable generation capacity at the Company’s AI infrastructure campus. See Note 5, Acquisitions, for more information.