Nvidia Pledges Its Own Balance Sheet Behind GPU Collateral Values in $500B Financing

Nvidia guaranteed that GPUs used as collateral in its $500 billion AI infrastructure financing would retain their value, pledging to cover up to 25% of any shortfall. Financiers flagged this as "wrong way" risk — Nvidia's obligations would grow precisely as demand for its chips weakens. Bond markets reacted negatively, prompting CEO Jensen Huang to publicly defend the arrangement.