Nvidia is talking to insurers about a product that doesn't exist yet: insurance against its own chips losing value too fast.
The structure, per the Financial Times, is residual-value cover. A smaller cloud operator borrows against its GPUs. If it defaults and the chips can't be resold for enough to cover the loan, the insurer eats the difference. Nvidia is working with reinsurance broker Howden Re, and has shared chip depreciation data and forward compute-price models with at least one insurer.
The comparison Jensen Huang keeps making is aircraft. Planes are financed against residual value because the industry has decades of resale data — everyone knows roughly what a 12-year-old airframe fetches.
GPUs have almost none of that. The chips are new, the refresh cycles are fast, and nobody can say with confidence what an H100 is worth in 2029. That's the whole problem. You cannot underwrite a depreciation curve that has never been measured.
GPUs have almost none of that. The chips are new, the refresh cycles are fast, and nobody can say with confidence what an H100 is worth in 2029. That's the whole problem. You cannot underwrite a depreciation curve that has never been measured.
Which is why Nvidia is handing over its own depreciation data to get this off the ground. Before capital will finance hardware, somebody has to establish what used hardware is actually worth.
That's the same problem one tier down, in robotics. A warehouse operator financing twenty units, a lab upgrading a fleet, an owner deciding whether to sell — all of them are guessing, because nobody's been tracking what these machines resell for.
It's why we built the Robot Resale Index.
1,140 tracked sales across 62 models, currently at 96.4 & down 3.6%. Not a marketing number , it’s the beginning of a depreciation curve.
Aircraft got financeable when their resale value became measurable. Robots will go the same way.