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.

CoreWeave is a company that came from basically “nowhere”

I find this striking! First of all, these are chips that are collateral,…

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