Nvidia takes on new risks as neoclouds face a shakeout
Business Insider · Geoff Weiss ·
As neoclouds struggle to finance their growth plans, Nvidia is finding new ways to help, while weighing how much risk to take.
Nvidia helped nurture a wave of neoclouds. Now, they're experiencing growing pains — and leaning on financial support from mom and dad.
Neoclouds, which rent out AI computing power, have expensive ambitions: buying billions in chips and securing the data center capacity to run them. Although demand for AI is off the charts, borrowing that kind of money has gotten harder.
With construction delays and power shortages, lenders worry young neoclouds won't deliver on their plans and repay their debts.
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