Nvidia's AI financing push raises new questions about market leverage

Nvidia's AI infrastructure financing initiative, involving over $500 billion in third-party capital, has intensified investor concerns about hidden leverage risks in the AI boom following the collapse of hedge fund Situational Awareness. The chipmaker has partnered with firms including Apollo, Blackstone, BlackRock, and Goldman Sachs to fund next-generation data centers, treating its hardware as an "investable infrastructure asset." Goldman Sachs estimates hyperscalers now hold roughly $1.5 trillion in lease commitments, with about $1 trillion classified as non-started leases not yet on balance sheets. Analysts remain divided on systemic risk, with JPMorgan's Jamie Dimon warning margin debt is "quite high" while others cite concentrated tech positions as the greater concern. The Situational Awareness collapse, which lost 67% in July, is viewed by some as isolated poor risk management rather than broader instability.