Nvidia links with Wall Street firms for $500bn AI financing deal
Apollo, BlackRock, Goldman Sachs and KKR among those working with chipmaker to fund infrastructure Nvidia has partnered with six major Wall Street financial institutions to raise more than $500bn (£370bn) capital for artificial intelligence infrastructure. The Nvidia chief executive, Jensen Huang, said on X that the company has the option to backstop up to $125bn, or 25% of the potential deals.…
Nvidia, the chipmaker with a $5.3tn valuation, has teamed up with six major Wall Street financial institutions to raise over $500bn for artificial intelligence infrastructure. The partnership includes Apollo, BlackRock, Goldman Sachs, and KKR, among others. Nvidia CEO Jensen Huang revealed that the company holds the option to backstop up to $125bn, or 25% of the potential deals.
This move underscores the surge in demand for AI computing capacity, as governments, companies, and startups scramble to build datacenters. Big tech companies have signaled that spending on AI will continue unabated, with combined outlays expected to surpass $730bn in 2023. However, concerns remain over the link between high tech company valuations and the need for massive investments to support their ambitions.
The deal will create financing platforms, enabling third-party investors to treat AI "compute" as an asset class. Nvidia aims to provide customers with access to scarce compute at scale and help build the AI factories that will power various industries and countries in the AI era. KKR co-chiefs Joe Bae and Scott Nuttall emphasized the importance of these financing platforms in accessing scarce compute resources.
The specifics of the financial terms, individual firm commitments, and deployment timeline for the $500bn remain undisclosed.
Written by urgent.news from Guardian Business's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
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