Nvidia gets $500bn from major investors to develop AI data centres
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, the chipmaker, has secured $500bn in capital from leading Wall Street banks and investors to develop artificial intelligence infrastructure. This financing will be allocated towards Nvidia's own projects and those of its partners, with a focus on constructing new data centers, manufacturing AI chips, and increasing their availability to buyers.
The investors, including Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR, are treating AI hardware and infrastructure, known as compute, as an asset class for the first time. Nvidia's CEO, Jensen Huang, emphasized that compute is now revenue for the company, and they are creating a new class of productive, investable infrastructure called AI factories.
The demand for Nvidia's chips and services has driven the company's stock market value up fivefold in three years, with companies like Google, Meta, Amazon, Microsoft, SpaceX, Tesla, OpenAI, and Anthropic collectively spending over $1tn on AI projects in the same period. However, there are concerns about whether these projects will generate sufficient returns in the future.
Written by urgent.news from BBC Technology's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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