NVIDIA promises to guarantee residual value on GPUs, unlocking $500B in AI infrastructure
Nvidia will guarantee up to 25% of the residual value of its GPUs, unlocking $500B in third party AI infrastructure financing with partners Apollo, BlackRock, Blackstone, Goldman Sachs, & KKR.
NVIDIA guarantees up to 25% of the residual value of their GPUs, enabling $500B in third-party AI infrastructure capital from Apollo, BlackRock, Blackstone, Goldman Sachs, and KKR. After this announcement, NVIDIA’s stock price fell by 1.4% ($70B in market cap).
First time ever that a semiconductor company takes on product liability to finance datacenter deployments of their products. Leveraged finance in the AI arms race! Downside risk has now shifted from the investors to NVIDIA if the GPUs depreciate faster than anticipated. Game on!
Source: the-decoder.com
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Author
Evgenii Arsentev
PhD · Founder & CEO, Dad4Kids
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