Nvidia gets $500bn from major investors to develop AI infrastructure
Nvidia has teamed up with some of Wall Street's largest banks and investors to raise $500bn (£370bn) in capital for artificial intelligence (AI) infrastructure.
Nvidia has secured $500 billion in capital from major investors to develop artificial intelligence (AI) infrastructure, marking the first time AI hardware and infrastructure have been treated as an asset class. The chipmaker announced partnerships with prominent financial institutions including Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR.
According to Nvidia CEO Jensen Huang, "In AI, compute is revenue" as compute represents the critical infrastructure necessary for AI systems to function. The funds will support Nvidia's own projects as well as those of its partners, which are likely to include the construction of new data centers for AI processing and the establishment of factories to manufacture AI chips.
Industry leaders such as BlackRock and Macquarie Asset Management have already entered into individual deals with Nvidia-backed entities to finance AI infrastructure projects. With major tech companies like Google, Meta, Amazon, and Microsoft relying on Nvidia's GPUs for their AI services, the demand for Nvidia's chips has driven the company's stock market value five times over in just three years.
Huang stated that Nvidia's role is evolving from a chip-maker to a creator of new infrastructure, "AI factories."
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