An exciting breakthrough in GPUs that isn’t really about computing. | Illustration by Alex Castro / The Verge
Gather around, children. We are about to discuss some financial innovation: using computer chips as collateral for loans.
CoreWeave, a cloud computing startup backed by Nvidia and Magnetar Capital, has secured a $2.3 billion debt facility using Nvidia’s sought-after H100 GPUs as collateral. The company intends to use that money to purchase more high-end chips, among other things.
If your head hurts, let me try to sum this up: Nvidia invested in CoreWeave, which is reliant on Nvidia products, and now those Nvidia products are being used as collateral to buy… what is most likely more Nvidia products. Fantastic.
I find this striking! First of all, these are chips that are collateral,…