NVIDIA's financing of neoclouds and AI developers raises investor unease
NVIDIA, best known for its AI chips, is now funding AI model developers, data center companies, and neoclouds and helping customers take out loans or providing backstops, but things are getting bumpy.
As credit tightens, neocloud companies like CoreWeave, Nebius, and IREN have seen their shares tumble at least 30% this month.
Even CoreWeave's credit risk is spiking, making investors uneasy.
NVIDIA's $36B deals and $105B guarantee
NVIDIA has put up $36 billion in deals with neoclouds and even guaranteed up to $105 billion for an OpenAI data center.
NVIDIA CEO Jensen Huang says this support is needed to keep up with skyrocketing demand for computing power.
Still, some analysts worry NVIDIA might be taking on too much risk as it shifts from just making chips to becoming a major financier in the AI world.