Definition ∞ AI Hardware Finance refers to the financial mechanisms supporting the acquisition, deployment, and operation of specialized hardware for artificial intelligence applications. This encompasses funding models for GPU farms or AI data centers, often involving investment in physical assets. It addresses the substantial capital requirements for advanced computational infrastructure.
Context ∞ The current situation involves increasing demand for financing solutions as AI hardware costs escalate. A key development to watch for is the emergence of novel financial instruments, potentially tokenized real-world assets, to democratize access to investment in this capital-intensive sector.
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