Nvidia CEO Jensen Huang is collaborating with major Wall Street firms—including Goldman Sachs, BlackRock, and KKR—to develop chip-backed securities aimed at raising $500 billion for AI infrastructure. This funding will support AI labs and enterprises in building data centers and acquiring necessary equipment. The proposed collateral for these securities will be Nvidia’s graphics processing units (GPUs).
The initiative comes as hyperscalers like Microsoft and Amazon face depleting cash reserves while planning over $700 billion in capital expenditures for AI-related projects. Nvidia may also consider guaranteeing a quarter of each loan, potentially providing borrowers with better interest rates, although borrowers will need to use Nvidia’s preferred system architecture. The plan is still in early stages, with no finalized agreements yet in place.
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