Jensen Huang defends neocloud financing: high borrowing costs are a side effect of huge AI demand, not a business flaw

rohanpaul_ai · x · 2026-10-22

Jensen Huang addressed concerns about neocloud financing and their high cost of capital:

• Nvidia invested in neoclouds because they are good investments, which is different from backing them
• Neoclouds have plenty of customers and are sold out; their only problem is a shortage of working capital to buy the land, power, buildings and chips needed to serve those contracts
• He argues rising borrowing costs are a side effect of huge AI demand, not a flaw in their business model: "Everything else will get solved when demand is high."

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