Shadow Credit Looms Over AI Financing: $70B in Hidden Liabilities

Investors fear roughly $70 billion of phantom liabilities tied to AI-deployment financing that don’t show up on corporate balance sheets; Nvidia’s proposed residual-value backstops could provide tens of billions in support for AI-related debt, letting borrowers lean on Nvidia’s credit to reduce client costs, while potentially shifting risk off balance sheet and creating new systemic exposure if paybacks slip.