Nvidia's Jensen Huang Wants AI Chips To Be A 'Financeable Asset,' Says Neocloud Demand Is 'Off The Charts'

(MENAFN- AsiaNet News)

• Huang added that demand for neoclouds is“off the charts,” but capital remains a constraint.
• The Nvidia CEO also stated that U.S. regulations have accelerated China's efforts to develop domestic chips.
• He added that Nvidia remains open to working with Chinese companies, citing China's strengths in manufacturing and supply-chain technology.

Nvidia (NVDA) CEO Jensen Huang said on Thursday that the AI bellwether is trying to get lenders to treat its chips as a“financeable asset” and that he is open to working with Chinese partners, including memory maker CXMT. 

“One of the things that we're trying to do is to establish Nvidia's compute as a financeable asset,” Huang said, speaking to CNBC on the sidelines of GTC Berlin.“The residual value of our compute, because it's fungible, it's so productive, it's so durable, it is now becoming an asset class.”

The comments come after Nvidia announced a $500 billion AI financing plan in August Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR. 

NVDA stock fell as much as 2% in pre-market trade on Thursday. On Stocktwits, retail sentiment around the company dropped to 'neutral' from 'bearish' territory over the past day, while chatter remained at 'normal 'levels.

NVDA stock retail sentiment on October 22 as of 6:25 a.m. ET | Source: Stocktwits

Jensen Huang Shrugs Off Neocloud Credit Concerns

The Nvidia CEO said the problem for neoclouds is funding, not customers, as a run of failed or stalled listings and a bond sell-off weigh on the sector like CoreWeave (CRWV), Iren (IREN) and Nebius (NBIS) are companies that rent out GPU capacity to AI developers.

“If you look at the fundamentals, the demand for the neoclouds is off the charts. Their capabilities are extraordinary, and so what is missing in the middle is the working capital to fuel that growth, to fund that growth.”

– Jensen Huang, CEO, Nvidia

According to him, capital is falling short because so many AI sectors are competing for it. He added that neoclouds need to“scale” in order to establish“regional excellence.”

Nvidia Remains Open To Chinese Partners

Huang also stated Nvidia is open to working with Chinese companies, pointing to the country's manufacturing and supply-chain capabilities. 

“Of course, we're open-minded. We work with Chinese companies,” he said.“Just about the whole world works with Chinese companies in the supply chain somewhere, whether it's in power generation or cooling technology or solar technology or battery technology.”

Huang's comments come amid U.S. restrictions on advanced chip exports to China and Beijing's efforts to develop domestic alternatives. He said the restrictions had accelerated China's push to build its own semiconductors.“We definitely accelerated it [China AI development] because of all the regulations,” the Nvidia CEO said.

CXMT's Chip Ambitions Add To The China Debate

Huang also said he does not view markets as permanently closed to foreign companies when asked about a possible partnership with CXMT.

“No market is closed forever, and China wants foreign companies to invest in China, just as Germany wants foreign companies and countries to invest in Germany.”

– Jensen Huang, CEO, Nvidia

CXMT, one of China's leading memory-chip manufacturers, is seeking to expand its role in the market. Earlier this month, reports said the company has shipped samples of its high-bandwidth memory (HBM3) to Huawei and is targeting mass production by the end of 2026. The reported yield figure of about 25% could not be independently established from the material provided.

Read also: Nvidia Is Moving Deeper Into Intel, AMD Territory: Supermicro Rolls Out 256-CPU Vera Rack

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