JPMorgan, Goldman Sachs underwrite $1.3B of $5B Volta Infrastructure loan
Business
JPMorgan and Goldman Sachs are dialing back risk on a huge $5 billion loan for Volta Infrastructure, the new artificial intelligence cloud company.
They're only backing $1.3 billion of it, leaving the rest, meant for buying NVIDIA chips, not underwritten by the banks.
It's a way to stay cautious as investors demand more rewards for taking on risky AI debt.
Volta, Bitdeer plan Norway data center
Volta is using the money to build a data center complex in Norway with Bitdeer Technologies Group.
The term loan covers lease payments; the $3.7 billion chip loan is not underwritten by the banks.
Banks are being extra careful after the 2022 market seizure amid rapid interest-rate hikes. Investors want to be compensated for the risk.