Upstart Holdings (UPST): Firm Announces New Castlelake Deal

Upstart Holdings, Inc. (NASDAQ:UPST) is one of the Stocks That Could Mint Millionaires in 2026.

Upstart Holdings (UPST): Firm Announces New Castlelake Deal

The fintech firm, founded in 2012, has originated about $48 billion in loans, a small share of the overall lending market. It partners with over 100 banks and credit unions and offers personal loans, auto refinancing, and home equity lines of credit—together representing a multi-trillion-dollar opportunity. A key innovation is using artificial intelligence to replace traditional FICO credit scoring, analyzing more than 2,500 borrower variables to better assess credit risk and reduce defaults.

In early November, the firm announced a new 12-month forward-flow agreement with alternative investment firm Castlelake. Under the deal, the latter has agreed to purchase up to $1.5 billion in consumer loans originated on the Upstart platform. This is the third such deal between the two companies, with earlier ones being $4 billion and $1.2 billion purchase agreements.

Upstart Holdings, Inc. (NASDAQ:UPST) operates a cloud-based artificial intelligence (AI) lending platform in the United States.

While we acknowledge the potential of UPST as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UPST and that has a 100x upside potential, check out our report about the cheapest AI stock.

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