A growing share of Nvidia’s demand is being financed through debt.
A $500B financing vehicle with Apollo & Co. allows data center operators to borrow money to buy GPUs. Nvidia is also backstopping part of OpenAI’s lease obligations in Ohio, while OpenAI continues to burn a lot of cash.
I don’t think the issue is with demand or the technology. I think the bigger risk is the financing behind it. What do you guys think?