Jensen Huang says Nvidia AI chips are "an investable infrastructure asset" in financing plan

Nvidia CEO Jensen Huang has promoted a $500 billion financing initiative, announced in August alongside Blackstone, Apollo and KKR, that would let the company's AI processors be pledged against large-scale borrowing by AI developers. Under the plan, Nvidia's chips would back loans. Reuters reported that lenders and money managers doubt the hardware will retain enough value over many years to serve as collateral and want added protections beyond what Nvidia proposed. Nvidia says its technology can support extended financing and has said some deals might include only limited guarantees on equipment's future worth. People familiar with the matter said forthcoming transactions may include stronger contracts. The issue matters because massive AI-related spending on computing facilities, semiconductors and electricity is helping drive U.S. growth, and borrowing terms could shape access to capital.