News Firm Uses Nvidia's H100 as Collateral to Raise $2.3 Billion Credit Line

[Admin]

If you have enough Nvidia's H100 processors, you may get a huge credit.

Firm Uses Nvidia's H100 as Collateral to Raise $2.3 Billion Credit Line : Read more

 

[A Stoner]

In this economy and at the current interest rates? Sounds absurd. They certainly better have some serious profit margins!

 

[Co BIY]

Using your rapidly depreciating assets for collateral sounds brilliant to me.

Also a bit of a no-brainer. Farmers put up their land for collateral, Airline's their airplanes and Remote AI-Enabled Data Center Providers put up their computers.

 

[Co BIY]

In this economy and at the current interest rates? Sounds absurd. They certainly better have some serious profit margins!

Sounds like the current interest rates are what is driving this strategy. Banks are skittish to lend now but the private capital will lend with the backing of solid assets (i do wonder about the rates). The corporate stock isn't a solid asset. The re-sellable H100 is.

They need to prove they have the financing to complete the buildout. They may not even need to dip that deep into the available "facility".

 

[wbfox]

So you don't use NVIDIA to mine crypto, it has just become the crypto. Great.