As Nvidia partners with Wall Street firms to mobilize more than $500 billion of third-party capital for AI infrastructure, the increasingly complex financing underpinning the boom is coming under closer scrutiny.

Hyperscalers and their financial backers are turning to bond markets, joint ventures, leases and other structures to fund an unprecedented infrastructure buildout. At the same time, leverage is increasing investors’ AI exposure, as hedge funds and other investors use prime brokerage borrowing and derivatives to amplify returns on their bets on the boom.

But the unravelling of AI-focused hedge fund Situational Awareness, after losses on its leveraged equity bets, is heightening concerns over how much is being borrowed, where it sits, how visible it is, and how quickly it could unwind, as market watchers debate whether revenues justify the scale of spending.