Nvidia is facing growing investor concerns over its off-balance-sheet liabilities, which reached nearly $30 billion as of April 28, 2024. These commitments, mostly tied to long-term supply contracts, capacity reservations, and multi-year cloud agreements, do not appear as traditional debt on the balance sheet. If these obligations were included, Nvidia’s reported shareholder equity would drop from $49.1 billion to approximately $19.8 billion, representing a 60% reduction. The company already recorded $4.5 billion in charges for excess inventory in Q1 of fiscal year 2026. Nvidia announced a partnership with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR to create a financing platform exceeding $500 billion for AI compute infrastructure, with a structure designed to keep resulting debt off Nvidia’s balance sheet.
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