Nvidia turns to Wall Street giants to raise $500bn for AI infrastructure
(Bloomberg) -- US investment giants including Apollo Global Management Inc., Blackstone Inc., BlackRock Inc. and Brookfield Asset Management are partnering with Nvidia Corp. to source $500 billion in financing for artificial intelligence infrastructure.
US investment firms, including Apollo Global Management, Blackstone, BlackRock, and Brookfield Asset Management, have joined forces with Nvidia to source $500 billion in financing for AI infrastructure. This collaboration will create large-scale, low-cost capital pools for Nvidia customers, according to the statement released on Monday.
Nvidia CEO Jensen Huang explained that he approached only six financial institutions initially, and none declined the partnership. The initiative aims to provide debt financing to Nvidia's largest clients, facilitating access to scarce compute power for AI development. The financing will take the form of private offerings and bonds issued by special-purpose entities, with the ability to reallocate funds to different buyers, thereby reducing risk for debt investors.
Goldman Sachs, acting as the primary bookrunner, will also earn returns from the debt distributed via its asset-management arm. Nvidia's computing power is described as an "investable infrastructure asset," with the firm potentially supporting up to 25% of an opportunity. The financing plans will be rolled out within months, with the first deals expected soon.
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