Nvidia CEO Jensen Huang Just Introduced a Bold $500 Billion Plan to Potentially Create Chip-Backed Securities. What Could Go Wrong?
During a recent CNBC panel, Huang and some of Wall Street's biggest banks and private credit CEOs announced a potential new way to fund the capital-intensive artificial intelligence build-out.
Overview
In 1970, Ginnie Mae first introduced the concept of a mortgage-backed security (MBS), a financial asset backed by a pool of mortgages that serves as collateral and passes its cash flows to investors.
It marked the birth of asset-backed securitization, which would spread to a wide range of assets, including auto loans, personal loans, student loans, and a broad swath of commercial loans.
Details
Now, Nvidia (NASDAQ: NVDA) CEO Jensen Huang has a bold plan to launch what essentially amounts to chip-backed securities, with the collateral being graphics processing units (GPUs).
Source
Originally published at www.fool.com.