Nvidia to team with Wall Street on US$500 billion package for AI infrastructure projects

Investment firms including Apollo Global Management, Blackstone, BlackRock’s Global Infrastructure Partners, Brookfield Asset Management, Goldman Sachs and KKR are collaborating with Nvidia on a $500 billion funding package for AI infrastructure projects, according to a report by the Financial Times. The potential deal may be announced as early as Monday, the newspaper stated, citing unnamed sources.

Several of the mentioned firms declined to comment on the reported partnership, while Nvidia has not yet responded to requests for comment. The company's stock price dropped by up to 3.2% following the news. Nvidia has already secured hundreds of billions of dollars in contracts across the AI industry, leading to concerns among some investors about the potential for inflated demand and valuations.

In a recent development, Nvidia partnered with South Korean conglomerate SK Group, committing to more than $500 billion in combined business. The company is also in discussions to provide up to $250 billion in financing to support OpenAI's lease of computing power from a US data center project, which would be one of Nvidia's largest financing deals with a customer.

The Financial Times did not specify which projects or companies would benefit from the $500 billion funding, nor did it clarify whether the amount represented new or existing commitments. Notably, Nvidia disclosed last month that it had made a substantial investment in Safe Superintelligence, an AI startup co-founded by former OpenAI chief scientist Ilya Sutskever, and was negotiating to fund $350 billion of OpenAI's chip purchases for the US project.

In June, Nvidia announced plans to raise $25 billion through a U.S. bond issuance, marking its first issuance in debt since 2021.