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AI labs flock to the Bank of Jensen
['Https', 'Www.Semafor.Com Author Liz-Hoffman', 'Business', 'Finance Editor']
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OpenAI and Anthropic need to borrow a lot of money but they don’t have profits or a track record of creditworthiness.
Nvidia’s $250 billion backstop to OpenAI will let the money-burning AI lab lease space at the largest data center ever built.
Nvidia’s backstop for OpenAI is literally that — OpenAI is trying to sign a lease and its landlord, SoftBank, doesn’t like the tenant risk.
Risky AI stuff is going into Nvidia, Broadcom, and Google and emerging similarly shined up.
Nvidia does need to be a part of the AI buildout, but it is testing its balance sheet to finance its customers.