Complexity in AI financing will not make the risks disappear. 

Blain’s Morning Porridge August 13th, 2026“Complexity does not eliminate risk – it simply hides it in plain sight.”The AI infrastructure build out already dominates credit market funding. Now Nvidia will effectively securitise its chips to its market though a panel of private capital markets firms that lend it credibility. The worry is complex and appealing deal structures will simply hide the risks inherent in AI – and increase the likelihood of a correlated crash when something inevitably breaks. Key takeawaysFinancial complexity will make AI easier to finance – but it does not change the economic risks.The securitisation of Nvidia chips has the potential to accelerate the AI boom – but comes with increased correlation risks.Nvidia is “guilty” of circular financing – funding its customers to buy its chips and using the markets to absorb the risks.There are questions about chip longevity – how soon will they become obsolete or be replaced by competitors?The degree to which Nvidia risks now links hyperscalers, datacentres, energy, water, and the AI industry is enormous, and could destabilise the economy in a crisis. There are multiple points of potential failure.What’s not to like about the new Nvidia $500 bln Chip Funding Programme?You can read the Morning Porridge by subscribing on ⁠www.morningporridge.com⁠, and have it delivered fresh to your inbox every morning!