By Daragh Thomas
Publication Date: 2026-08-18 18:27:00
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Billionaire “Bond King” Jeff Gundlach is warning that Wall Street’s latest attempt to keep the AI boom financed may be a signal that risk markets are nearing a top.
The DoubleLine Capital CEO took aim at Nvidia Corp. (NASDAQ:NVDA) and its partnerships with six financial giants designed to mobilize more than $500 billion for AI infrastructure, questioning whether fast-evolving chips make suitable collateral for long-term debt.
“Assets of unknown life as collateral for long term debt?” Gundlach wrote on X. He said the plan “will not likely age well,” comparing it to issuing 30-year asset-backed securities against warehouses of “newly engineered bananas of unknown life.”
Nvidia Is Finding New Pools of Money for the AI Boom
Nvidia last week teamed up with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR on financing platforms targeting more than $500 billion for AI infrastructure.
The money is largely outside capital, with the platforms designed to channel institutional money into the buildout rather than put the burden on Nvidia’s own balance sheet.
Nvidia CEO Jensen Huang has said the company may provide residual-value support on up to 25% of individual opportunities, while the memoranda remain subject to final agreements.
Ben Thompson, founder of the influential tech strategy…