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Jensen Huang's $500 billion GPU collateral plan runs into the depreciation problem

8/12/2026

The core constraint in collateral-backed debt is how fast the pledged asset loses value.

Nvidia CEO Jensen Huang is pitching GPUs as long-term collateral to unlock $500 billion in AI financing, and the question lenders have to answer is whether that hardware depreciates slowly enough to support the commitment.

China is the variable most directly applying pressure to that answer.

The collateral mechanism and where it stresses When a physical asset backs a financing structure, lenders estimate its residual value across the loan's life.