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Nvidia in Talks With Insurers Over Chip-Backed Lending Risk

Original: Nvidia Holds Discussions With Insurers About Shouldering Lending Risks Against Chips

Nvidia is holding discussions with insurers about them taking on lending risks tied to its chips, according to MarketScreener. The talks would let lenders finance chip purchases with insurance covering potential losses, an approach that reflects the enormous sums now tied up in AI computing hardware. Details of the negotiations, the insurers involved and the likelihood of a deal have not been disclosed.

Why now: Reports of Nvidia seeking to offload financing risk on its chips highlight how much of the AI boom rests on debt-funded hardware purchases.

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