Prof G Markets · Wednesday, August 12, 2026
Jay Goldberg explains that lenders are hesitant to accept GPUs as sufficient collateral for financing AI compute infrastructure, often requiring collateral backed by customer agreements like those from Microsoft. Nvidia's role has evolved to provide additional guarantees, essentially trying to convince investors that GPUs are a viable collateral asset.
“And the lenders look at that and they want collateral. And they have always said, um, that the GPUs are not sufficient collateral.”
“And so, if you look at most of the really big NeoCloud financings that have taken place, the collateral is ultimately backed not by the GPUs, not the hardware, but by the customers, right? Microsoft signed a long-term agreement. They're going to buy this compute. That's the credit guarantee that the lenders want.”
“And so, what's going to provide the guarantee here? What's the collateral? Sure would be nice if the lenders would accept GPUs as collateral. I think that's that's the message he's trying to get across.”
“But ultimately, it's it's trying to sell GPUs as collateral. And it's it's tough sell to investors.”