Jensen will have Nvidia sign a lease with datacenter builder Hut 8, supply…

Brief

Kakashii claims Jensen Huang is running an off‑balance‑sheet play: Nvidia signs leases with datacenter builder Hut 8, provides components, then subleases capacity to SPV neoclouds like CoreWeave so they can show RPO and supply GPUs to customers, allowing Nvidia to recognize GPU revenue while masking funding stress from dilution, debt, and SPVs.

Why it matters

Jensen will have Nvidia sign a lease with datacenter builder Hut 8, supply components to lower Hut 8’s costs, then sublease that capacity to an independent SPV “neocloud” such as CoreWeave so the neocloud can report RPO and route GPUs to customers (startups, hyperscalers, OpenAI), letting Nvidia book GPU revenue.

Key details

The poster asserts rising costs are straining neoclouds and that funding from dilution, debt, and SPVs isn’t enough, so Nvidia structures this off‑balance‑sheet lease/sublease scheme to keep neocloud business off its balance sheet — “Win/win, until it’s lose.”

am starting to feel dizzy

Kakashii (@kakashiii111)

Jensen will do anything to keep "neocloud" business off Nvidia's balance sheet, and will do anything to drive demand, even as rising costs start to weigh on the neoclouds and the funding currently provided by dilution, debt, and SPVs isn't enough.

So Jensen came up with an idea: Nvidia itself will sign a lease from a datacenter builder. Nvidia will provide the components to reduce the cost for the datacenter builder, in this case Hut 8, and will then sublease this lease to one of its independent SPVs, a neocloud, e.g. CoreWeave, and the latter will enjoy RPO, showing "demand," and will provide this to a startup, hyperscaler, or OpenAI and Nvidia can book the revenue of the GPUs.

Win/win, until it's lose

— https://nitter.net/kakashiii111/status/2082159710221082808#m