Nvidia and six Wall Street firms line up $500B in GPU-backed financing
Nvidia is working with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR on $500 billion of financing that treats GPUs as long-lived, revenue-generating collateral — a reversal from Jensen Huang's line last year that last-generation Hopper chips were close to worthless. Huang now puts the A100's economic life near a decade, and that number sets credit terms: CoreWeave's borrowing capacity shrinks as its chips depreciate, so chip depreciation is now a lending question rather than an accounting one. The deal is at the memorandum-of-understanding stage, like the $100 billion Nvidia-OpenAI MOU that never closed, and Larry Fink compares the structure to the 1970s birth of mortgage-backed securities.
Source: theverge.com ↗
This is the very beginning, like what it was when I started in the mortgage-backed securities market in the 1970s.
Why this matters
- → GPU depreciation schedules now determine loan terms, not accounting entries.
- → Huang reversed his position: Hopper chips went from "couldn't give away" to decade-long revenue assets.
- → Mirrors 1970s mortgage-backed securities boom—same structural risk of overproduction and demand collapse.