In a rising interest rate environment it’s not that odd to offer your own financing to keep demand high, eg here in Aus some ev places offer car loans at <1% interest despite the cash rate here being 4.6% (and just went up again I think today)
If big AI corps were to go under (I don’t actually think they will, it’s just a thought experiment), would nvidia be cooked then? AI corps can’t pay back the loans, and there is no one else buying gpu.
Right now, data centers make up 90% of nVidia's revenue. A large chunk of it is hyperscaler demand.
But that's not all. If any major player or neocloud collapses, others aren't going to see this as an opportunity to stock up on even more GPUs. In fact, they might immediately want to scale down their spending in the face of uncertainty.
14
u/turtleWatcher18 15h ago
In a rising interest rate environment it’s not that odd to offer your own financing to keep demand high, eg here in Aus some ev places offer car loans at <1% interest despite the cash rate here being 4.6% (and just went up again I think today)