Nvidia Pledges GPU Residual-Value Guarantees to Unlock $500B for AI Infrastructure

Nvidia has taken on a guarantee of up to 25% of its own GPUs' residual value to unlock $500B in third-party financing for AI infrastructure. Partners in the deal include Apollo, BlackRock, Blackstone, Goldman Sachs, and KKR; following the announcement, Nvidia shares fell 1.4%, erasing $70B in market capitalization.

It marks the first time a chipmaker has used its own hardware to back data-center construction loans — the AI race is entering leveraged-finance territory. If the GPUs depreciate faster than projected, the depreciation risk falls on Nvidia rather than on investors: the stakes just went up for every player in the market.