Nvidia and Financial Firms Collaborate to Turn Compute into an Asset Class
In a bold financial move, Nvidia has partnered with major firms like Apollo, BlackRock, Brookfield, Goldman Sachs, and KKR to create $500 billion in financing that aims to turn compute power—specifically AI chips—into an investable asset class. According to CEO Jensen Huang, these chips are now revenue-generating assets due to their productivity, longevity, fungibility, and flexibility. This strategy marks a significant shift from previous statements by Huang, who had dismissed older Hopper chips as obsolete once the newer Blackwell architecture launched. The financial industry is drawing parallels between this initiative and past innovations like mortgage-backed securities in the 1970s. However, concerns remain about whether demand for AI compute will continue to grow or if oversaturation of data centers could undermine its value. Despite these uncertainties, rising rental prices for older chips suggest some market confidence. Still, critics point out that memorandums of understanding—like the $100 billion deal with OpenAI—are often symbolic and not binding.
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Topics: AI compute as asset class GPU financing Nvidia strategy