Nvidia’s new $500B plan is risky but brilliant, especially for aging GPUs
Nvidia is trying to make old AI chips financeable assets, not stranded hardware.
The plan brings Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR into up to $500 billion of AI data center funding. Nvidia would backstop part of the collateral risk, covering up to 25% of any shortfall if pledged GPUs fail to hold expected value after a default. That limits outside lenders’ fear, but it also leaves Nvidia exposed if chip demand weakens at the same time its guarantee obligations rise. Huang argues a broad resale and reuse market can keep Nvidia compute valuable across customers, clouds, and operators. TechCrunch AI's note
The plan brings Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR into up to $500 billion of AI data center funding. Nvidia would backstop part of the collateral risk, covering up to 25% of any shortfall if pledged GPUs fail to hold expected value after a default. That limits outside lenders’ fear, but it also leaves Nvidia exposed if chip demand weakens at the same time its guarantee obligations rise. Huang argues a broad resale and reuse market can keep Nvidia compute valuable across customers, clouds, and operators. TechCrunch AI's note
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