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. The chipmaker said it had struck deals with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR, and that the investors were for the first time treating AI hardware and infrastructure, often […] The post Nvidia gets $500bn…
Nvidia, a leading chipmaker, has formed partnerships with major Wall Street banks and investors to raise $500 billion (£370 billion) for AI infrastructure. The investors, including Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR, have started treating AI hardware and infrastructure, or "compute," as an asset class.
Nvidia CEO Jensen Huang stated that "compute is revenue" in AI. The capital will be allocated towards Nvidia's projects and those of its partners, with a focus on constructing data centers for AI processing, building new AI chip factories, and increasing availability to buyers. Companies like Google, Meta, Amazon, Microsoft, SpaceX, Tesla, OpenAI, and Anthropic rely on Nvidia's GPUs for their AI platforms and services.
These companies have collectively invested over $1 trillion in AI projects and infrastructure in just three years, and demand for Nvidia's chips is driving the company's stock market value up fivefold in the same period. Huang referred to Nvidia's role as a chip-maker as the beginning of the company's transformation into creating "AI factories."
Additionally, Jim Zelter, president of Apollo, highlighted that "modern compute has emerged as a scarce, mission-critical asset class" and is "positioned to drive significant long-term economic growth and productivity gains."
Written by urgent.news from KBC's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
