Nvidia (NVDA) is tied to a proposed $300 million loan sought by PaleBlueDot AI to buy its chips for a Tokyo data center serving China's Xiaohongshu social media platform, Bloomberg News reported Monday, citing people familiar with the matter.

PaleBlueDot has reportedly approached banks and private credit lenders for financing, with JPMorgan Chase (JPM) involved in preparing materials for potential lenders.

The deal has been under discussion for about three months and could still fall through, the news outlet reported.

Nvidia shares were down nearly 1% in recent Monday premarket activity.

PaleBlueDot AI could not be reached for comment, while Nvidia and JPMorgan Chase did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)