Nvidia Pushes Wall Street to Lend Against AI Chips Like Mortgage Collateral

Nvidia is asking Wall Street to lend against AI chips the way banks lend against mortgages, according to a Yahoo Finance report citing the company's outreach to financial institutions. The idea would let data center operators and AI companies borrow against the value of GPUs (graphics processing units) they hold, freeing up cash to buy more computing hardware. The push comes as a top Bank of America analyst said Nvidia could generate $1 billion in free cash flow every weekday by this time next year, a figure that underscores how much cash is now flowing through the AI hardware supply chain. If banks embrace chip-backed lending, it would mark a new stage in how the AI buildout is financed, moving beyond corporate balance sheets and into structured credit markets more commonly associated with real estate. What isn't yet clear is which banks, if any, have agreed to originate this kind of lending, or how they would price the risk of collateral that can lose value quickly as chip generations turn over. Blackstone was named alongside Nvidia in reporting on the initiative, suggesting private capital firms may play a role in structuring these arrangements.