Top Wall Street lenders have created a big debt market back by red-hot Nvidia GPUs.
A report from the FT says firms have made billions in loans to companies that use Nvidia chips as collateral.
AdvertisementTop Wall Street firms have loaned billions to a handful of tech companies that have used Nvidia's artificial intelligence-enabling GPUs as collateral, The Finanacial Times reported.
According to the FT, big financial institutions including BlackRock, Blackstone, Pimco, and Carlyle, have made over $11 billion in loans to "neocloud" companies, tech companies that provide cloud services to other tech firms building AI products.
There are concerns, though, over the value of Nvidia's GPUs, with the price of existing AI chips potentially coming down as more advanced models are released and as companies potentially dial back AI spending.
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Nvidia, FT, Service, Finanacial Times, BlackRock, Blackstone, Lambda Labs, Leasing, Business
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