Nvidia Wants a Decade of Collateral. Lenders Price Four Years, in a Bite

Nvidia’s $500 billion plan to lend against its own chips has met a more careful Wall Street. The lenders who would fund it price a GPU over three to four years, while the seller argues nine to ten.

• Banks typically underwrite GPUs on a three to four year depreciation schedule, the number Impax Asset Management gave Reuters. Nvidia points to the valuation firm Barkr, which puts GB300 NVL72 systems at nine to ten years.
• The deals that have closed leaned on a customer balance sheet rather than on chip resale value. CoreWeave’s $8.5 billion facility is rated investment grade because lenders rely on Meta’s payments, and Broadcom backstopped more than 80 percent of a $35 billion Anthropic structure.
• The consequence lands on anyone who rents compute. A shorter assumed life recovers the same capital over fewer hours, so the floor under a GPU hour rises even for operators who never borrow.

Read the full analysis, A GPU’s Useful Life Is Now a Financing Term That Sets the Cost of AI Compute.