Private credit roundup: Nvidia's half trillion for chips financing, plus others

A Reuters Breakingviews column by Jonathan Guilford and Karen Kwok took a more sceptical view. They likened Huang to a car salesman hawking a popular model, who sees eager customers for computing power but knows fewer of them can afford it. So the fix is to round up deep pockets from across Wall Street to cover the gap. The column argued the financing structure exists because Nvidia's own customers can't fund the buildout on their own balance sheets.

Private-equity and debt firms have emerged as a crucial source of funding for AI companies strained by a shortage of costly and supply-constrained AI infrastructure needed to meet rising demand. Chipmakers have rushed to sign deals as tech companies try to reduce reliance on Nvidia, with chip-backed financing that pits AI infrastructure in the same asset class as other types of collateral in securitised lending.