In an interesting turn of events, startups are now utilizing Nvidia’s AI GPUs as a form of collateral to secure substantial loans from financial institutions, with reports indicating that one company, Fluidstack, has achieved over $10 billion in funding.

Fluidstack, based in London, leveraged its holding of Nvidia AI GPUs to obtain this impressive loan from multiple financiers, among them Macquarie. This paradigm is not exclusive to Fluidstack; CoreWeave, an AI cloud service provider, is another pioneer in this realm, having secured loans up to $9.9 billion by using its own Nvidia H100 AI GPUs as collateral.

Such arrangements highlight the recognition of the potential value of these GPUs, affecting not only the companies but also Nvidia’s stock performance positively.

“Even the banks are taking notice of the value of this silicon.”

This emerging model raises intriguing questions about the longevity and future use of Nvidia GPUs, as companies look to leverage these assets for cash flow while ensuring that they do not diminish in value.