(Sept 9): Zankore, an Indonesian AI infrastructure platform backed by Nvidia Corp, signed a US$3.1 billion (RM12.6 billion) loan deal on Wednesday to purchase advanced chips, underscoring surging demand for computing capacity across Asia.

Citigroup Inc, ING, Natixis, Qatar National Bank and United Overseas Bank Ltd underwrote the loan, one of Asia’s largest AI infrastructure financing, according to a statement by Zankore. Citigroup is the sole debt adviser on the deal.

Proceeds will be used to acquire and deploy advanced Nvidia graphics processing units in the company’s new AI factory, which will have an initial capacity of 100 megawatts before expanding to one gigawatt.

GPU financing is emerging as the next frontier for AI lenders, as banks and private credit expand beyond data centres to the hardware that powers them. Bank-led deals have been scarce in Asia, where uncertainty over the residual value of chips and geopolitical risks amid US-China technology rivalry remain key obstacles.

Zankore’s financing carries a revenue-sharing and credit-support model from Nvidia, which would ease lenders’ concerns over repayment and credit risk.

“Nvidia is helping us to make it financeable,” Vikram Sinha, chairman of Zankore, said in an interview. Nvidia’s service order will ensure that the computing capacity can be extended to not only investment grade customers but “small enterprises who need compute on demand,” he said.

Nvidia launched the model in July to help its partners broaden access to data center infrastructure and provide financial support for smaller AI players.

Apart from Nvidia, Zankore’s shareholders include Indonesia’s second-largest mobile carrier Indosat Ooredoo Hutchison Tbk, Ooredoo Group and Nokia.

Uploaded by Magessan Varatharaja