Nvidia gets $500bn from major banks for AI build out
The money will be used to develop new data centres to house, operate, and cool miles of stacked computer chips that process AI data and actions.
Nvidia has partnered with major banks, including Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR, to raise $500 billion in capital for the development of artificial intelligence (AI) infrastructure. This funding will enable the company to accelerate its AI initiatives and those of its partners, which consist of constructing new data centers, manufacturing AI chips, and building AI factories.
Nvidia CEO Jensen Huang emphasized that AI compute has become a critical infrastructure asset and a separate asset class, with revenue potential. The banks have agreed to independently underwrite AI infrastructure projects, which will encompass the development of data centers, manufacturing facilities, and other necessary components to support AI systems.
The demand for Nvidia's GPUs has surged in recent years, with companies such as Google, Meta, Amazon, Microsoft, SpaceX, Tesla, OpenAI, and Anthropic allocating over $1 trillion to AI projects and infrastructure. As a result, Nvidia's stock market value has increased fivefold in three years, highlighting the growing importance of AI in the technology landscape.
Joe Bae and Scott Nuttall, co-chief executives of KKR, expressed their belief that compute infrastructure is a fundamental element for the success of digital infrastructure ventures. They pointed out that while ambition is essential, the true challenge lies in the execution and delivery of such projects.
The collaboration between Nvidia and these prominent banks marks a significant milestone in the AI boom, enabling greater access to capital and fostering long-term economic growth and productivity gains.
Written by urgent.news from BBC Business's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
