Jensen Huang on neocloud financing and high cost of capital
Jensen Huang said that Nvidia invests in neoclouds because they are good investments, which is different from an endorsement. Neoclouds have ample customers and are sold out; the only problem is a lack of working capital to buy land, power, buildings, and chips to fulfill commitments. He believes that rising borrowing costs are a side effect of enormous AI demand, not a flaw in the business model, and that when demand is high, other problems will be resolved.
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Jensen Huang on neocloud financing and their high cost-of-capital.
Nvidia invested in neoclouds because they are a good investment, which is different from backing them.
neoclouds have plenty of customers and are sold out, so their only problem is a shortage of working capital to buy the land, power, buildings and chips needed to serve those contracts. He argues that rising borrowing costs are a side effect of huge AI demand, not a flaw in their business model, and that money always finds its way to businesses with strong demand. "Everything else will get solved when demand is high." https://t.co/peYIUiOCrl