This article first appeared on GuruFocus.
Nvidia (NASDAQ:NVDA) CEO Jensen Huang said advanced chips are increasingly being viewed as financial assets as the company works with major investment firms to help fund the expansion of AI computing infrastructure.
Nvidia has signed memorandums of understanding with big tech companies. The group plans to develop financing platforms that could channel more than $500 billion in outside capital toward AI infrastructure over time.
Nvidia’s approach reflects the growing demand for computing capacity as businesses and cloud providers expand their AI operations. Huang said the company’s chips can support financing because they are widely used, can be deployed across customers and may generate revenue over several years.
The strategy also changes how investors may view GPUs, which have traditionally been treated as hardware that loses value quickly. Nvidia’s financing model instead treats computing equipment more like infrastructure, although rapid advances in chip technology could raise questions about the long-term value of older systems as newer processors reach the market.
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