Nvidia Seeks to Spread Chip Financing Risk with Insurance Talks

Nvidia Corp is exploring ways to shift part of the financing risk tied to its chips by holding talks with insurance companies, as it seeks to expand demand beyond major technology firms. The discussions involve potential insurance for loans extended to smaller 'neocloud' companies that use Nvidia's chips.

The chipmaker is working with broker Howden Re on a structure involving insurers, and has also considered using insurance groups to syndicate risk to hedge funds and other alternative investors. This move is part of Nvidia CEO Jensen Huang's broader push to make chips and AI infrastructure easier for outside investors to finance.

Huang has argued that chips should be viewed as an 'investable asset class' similar to other expensive, long-lived technology assets. The company has shared data on chip depreciation and the expected future value of computing power with at least one insurer.