Nvidia Seeks $500 Billion in Financing to Turn Compute Assets into New Class

Nvidia is teaming up with several major financial institutions to create $500 billion in financing for the chipmaker's compute assets, which include its GPUs and software. This move aims to turn compute into a new asset class, according to Nvidia CEO Jensen Huang.

Huang claims that chips have become revenue-generating assets that are long-lived, fungible, and flexible. However, this stance is at odds with his previous statements about the Hopper chip, which he said was difficult to sell last year but now says remains in active commercial use for up to a decade.

Analyst Michael Burry has suggested that chips depreciate every two to three years, while IBM's Arvind Krishna estimates that depreciation takes five years. Nvidia is pushing for a 10-year depreciation schedule, which would significantly impact loan terms and potentially benefit companies seeking financing from this consortium.