Savage—Jensen Huang is trying to build a GPU financing loop similar to real estate logic. 1/ Banks don’t like using GPUs as collateral because no one can predict how fast GPUs will depreciate. 2/ The reason is simple: when a new generation of GPUs hits the market, older cards can instantly lose value. 3/ Jensen Huang knows NVIDIA’s product roadmap better than anyone. 4/ So he simply offers banks depreciation insurance, covering up to 25% of the depreciation loss. 5/ With this layer of protection, those borderline projects stuck in the approval process can now get the green light from banks. Here’s some speculation: 1/ NVIDIA might also provide banks with reference designs for data centers, standardizing key specs to make different projects more uniform, interchangeable, and easier to value. 2/ Once assets are standardized enough, the related debt can be packaged into ABS, CLOs, and CDOs. That familiar 2008 vibe is already in the air, haha. 3/ By slicing up the debt, the higher-priority tranches could potentially get investment-grade ratings, which can then be sold to pension funds and insurance companies. 4/ Banks can also swap the unique credit risk of individual projects for the overall credit risk of the entire data center industry. Jensen Huang’s plan is crystal clear: enable customers to build data centers with financing costs closer to real estate projects, gradually moving away from expensive venture capital equity funding. The data center business is about to leap from the small VC poker table straight into the big leagues of institutional capital.