Nvidia's growing role as a funder of the AI building boom is facing its first serious test as credit conditions tighten for the cloud companies it backs, CNBC reports.
Beyond selling chips, Nvidia has invested in AI developers and so-called neoclouds and used its strong credit rating to help them borrow. Its July filing showed $36bn in off-balance-sheet backstops for neocloud agreements, plus a guarantee of up to $105bn for a planned OpenAI data centre in Ohio. In most cases it pays only if a partner defaults.
Shares in CoreWeave, Nebius and IREN have fallen at least 30% this month, and the cost of insuring CoreWeave's debt against default has jumped. Nvidia's own shares are down 7.6% in October. Nvidia declined to comment to CNBC.
Source: CNBC
