US firm seeks HK$2.34 bln loan for Nvidia chips to supply Xiaohongshu in Japan, Bloomberg reports

A US-based artificial intelligence company, PaleBlueDot AI, is seeking around US$300 million (HK$2.34 billion) in financing to help a Chinese client purchase advanced Nvidia chips for deployment in Japanese data centers, Bloomberg reported, citing people familiar with the matter.

The end-user client is said to be social media platform Xiaohongshu, also known as Red Note, and the potential deal has been in discussion for at least three months, though its completion remains uncertain, the report said.

PaleBlueDot AI has reportedly approached multiple banks and private lenders for the loan. JPMorgan Chase helped prepare documents to promote the potential financing to lenders but may not participate directly in the transaction, according to the report.

A PaleBlueDot spokesperson told Bloomberg that the reports were inaccurate but did not provide further details. JPMorgan declined to comment, while Nvidia and Xiaohongshu did not immediately respond to requests for comment.