AM Intelligence seeks $3 billion debt for Nvidia chips

AM Intelligence is reportedly seeking $3 billion in debt to buy Nvidia’s new Vera Rubin chips for a planned 1-gigawatt computing facility in Hyderabad. The infrastructure firm, founded by the team behind Greenko Group, is developing the facility as part of a broader $8 billion project.

The proposed financing combines bank loans and bonds, with $300 million in advance payments from potential customers intended to help offset hardware costs. The approach reflects the substantial upfront spending required before a data center begins generating revenue. Managing debt obligations while bringing the facility into operation remains a central financial challenge.

The project faces competition from major conglomerates and established global operators investing in India’s data center market. Rapid advances in AI hardware could also leave purchased equipment outdated before the facility is fully utilized, weakening investment returns. Power supply, cooling infrastructure and construction delays present additional execution risks that could raise costs and strain the company’s balance sheet.

Securing lender backing, completing construction and signing long-term contracts with large technology companies will be important indicators of viability. Sustained cash flow will depend on converting the capital-intensive expansion into an operational, commercially utilized facility.