Nvidia Seeks $500 Billion for New AI Chip Asset Class

Nvidia is teaming up with six major Wall Street asset managers to turn artificial intelligence chips into a new asset class. The plan would treat graphics processing units, or GPUs, as collateral with financeable value, similar to commercial real estate, toll roads and other infrastructure assets.

The $500 billion fundraising effort aims to bring in outside capital so Nvidia customers can build data centers and purchase Nvidia hardware without committing their own cash. This new financing structure could reshape how AI infrastructure is funded.

Nvidia CEO Jensen Huang described GPUs as 'productive, long-lived, transferable and flexible' assets that generate income, giving financial firms grounds to underwrite them as long-duration, income-producing assets.