Nvidia Partner GMI Cloud Seeks $300 Million Chip-Backed Loan for Thailand Facility, Report Says

GMI Cloud, a U.S.-based data center operator and partner of Nvidia Corp., is seeking to raise a $300 million loan to finance the purchase of advanced chips for its facility in Thailand, Bloomberg reported Thursday, citing people with knowledge of the matter.

Deal Details

The company has reportedly approached banks and private credit funds to arrange the financing, which would be secured by the purchased chips. The sources, who asked not to be identified because the discussions are private, indicated the deal is expected to offer lenders yields in the low-teens range.

The funds are intended for GMI Cloud's operations within a data center site in Thailand run by STT GDC Pte. According to the report, Chinese technology giant Tencent Holdings Ltd. is the intended end user of the chips and the associated computing power.

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A New Frontier in AI Financing

This move underscores a growing trend in the artificial intelligence sector where high-value hardware, rather than just physical infrastructure, is used as collateral. Lenders are increasingly looking at chip-backed financing as a new area of focus, extending beyond traditional data center loans to the valuable components that power them.

This financing effort follows a recent success for GMI Cloud in Taiwan, where the company closed a NT$13.9 billion ($436 million) loan for a similar project. That deal, backed by contracts for computing capacity, reportedly drew commitments from banks worth more than double the amount GMI Cloud had initially sought, signaling strong investor appetite for this type of asset-backed lending.