Nvidia and a consortium of major financial institutions—including Apollo Global, KKR, Brookfield Asset Management, BlackRock, Blackstone, and Goldman Sachs—have established a $500 billion financing framework for AI infrastructure, according to recent reports. The framework enables tech companies to lease Nvidia chips backed by financial support from these institutions. Critically, Nvidia is providing residual value support guarantees, potentially backing up to 25% of project costs, with a total commitment ceiling of approximately $125 billion, to address financial institutions' concerns about GPU depreciation.
The viability of this financing structure hinges on whether older GPU models retain their economic value. CoreWeave recently signed an A100 chip contract at near-current pricing rates through 2029, despite the A100's 2020 launch, suggesting older-generation AI chips may have longer economic lifespans than previously anticipated. However, risks remain if AI infrastructure buildouts slow, projects are delayed, or Nvidia releases breakthrough products that accelerate older GPU depreciation faster than forecasted.
