The $500 Billion Question Causing Waves Across Every AI Stock: How Much Are Nvidia GPUs Actually Worth?

A central question in Nvidia’s push to finance AI infrastructure could ripple across major AI stocks: how much value Nvidia GPUs retain over time. In August, Nvidia said it partnered with six Wall Street asset managers to provide up to $500 billion in financing for data center build-outs, using the GPUs themselves as collateral for the loans. Reuters reports that Nvidia argues a GPU’s useful life could last a decade, while bankers believe it’s closer to three to four years—an assumption that directly affects lending terms. Nvidia responded with an analysis of how major hyperscalers have extended depreciation schedules for server and networking equipment. The article also notes pricing changes from compute providers: CoreWeave said it contracted new compute at higher prices at an annualized rate of $40 million per megawatt in September, while Nebius raised hourly compute rental prices by 17% to 21% for various Nvidia GPUs, including chips that are four years old.