AIFinancial Times1h ago

Big Tech is increasingly using residual value guarantees

Big Tech is increasingly using residual value guarantees for off-balance sheet AI spend, giving Nvidia and Broadcom a way to support their customers' purchases

TL;DRTech giants use guarantees to hide AI spending costs off their balance sheets.

Why it matters: Obscures true AI capex, masks financial health indicators investors rely on for valuations.

Wall Street finds new way to turn tech giants' credit strength into cheaper funding for AI build-out

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Source: Financial Times · Opens in new tab