As neoclouds face a financial reckoning, Nvidia has to decide how far to go to help
Source: Business Insider ·
As neoclouds struggle to finance their growth plans, Nvidia is finding new ways to help, while weighing how much risk to take.
From the source
Nvidia CEO Jensen Huang.David Paul Morris/Bloomberg via Getty ImagesNvidia is finding new ways to support neoclouds as the industry faces growing pains.It could be on the hook for an entire data center, not just the AI chips inside.A neocloud shakeout looms, with stronger players eyeing assets from struggling rivals.Nvidia helped nurture a wave of neoclouds. Now, they're experiencing growing pains — and leaning on financial support from mom and dad.Neoclouds, which rent out AI computing power, have expensive ambitions: buying billions in chips and securing the data center capacity to run them. Although demand for AI is off the charts, borrowing that kind of money has gotten harder.With construction delays and power shortages, lenders worry young neoclouds won't deliver on their plans and repay their debts.Those fears intensified Thursday as neocloud stocks plunged amid worries about tougher data center regulations after the midterm elections and delays at multibillion-dollar…