Wall Street’s largest financial institutions have loaned over $11B to a niche group of tech companies due to their possession of Nvidia’s (NVDA) artificial intelligence chips, Tabby Kinder of The Financial Times reports. Blackstone (BX), Pimco, Carlyle (CG), and BlackRock (BLK) are a few of the companies who have created a new debt market by lending to “neocloud” companies, which provide cloud computing to tech groups building AI products. Neocloud groups have acquired tens of thousands of Nvidia’s high-performance computer chips, which are crucial for developing generative AI models.
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