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Goldman Sachs and JPMorgan Refuse to Underwrite 11% Interest AI Chip Loan

On October 13, Wall Street's two major investment banks, JPMorgan and Goldman Sachs, took the "rare step of limiting their exposure" in a $5 billion AI loan project for the newly established cloud service provider Volta Infrastructure Holdings. They only underwrote $1.3 billion in term loans and completely refrained from underwriting the $3.7 billion chip loan to mitigate potential risks. The entire loan package carries an interest rate of approximately 11%, marking one of the highest borrowing costs in the AI financing leveraged loan market. The offerings include 36,000 NVIDIA chips and a leasing right in Norway. (Zerohedge)

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