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For this startup, Nvidia GPUs are currency

An illustration of a cartoon brain with a computer chip imposed on top.
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.

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

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