Stocks opened slightly higher Tuesday as Nvidia rallied on a $500 billion AI infrastructure deal and oil prices held steady
Oil prices steadied after Brent crude pulled back from $90, as reports of progress in Middle East peace talks eased pressure on markets
Nvidia has formed partnerships with six major financial entities to create a $500 billion AI infrastructure fund. The goal is to provide long-term funding at attractive rates for customers deploying Nvidia-based AI infrastructure. The investment firms involved are Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR.
Nvidia's Chairman and CEO, David Solomon, stated that AI infrastructure should be viewed as tools that generate sustained economic returns, requiring appropriate financing. Financial companies believe AI data centers can be treated as long-duration infrastructure assets due to Nvidia's compute generating revenue over extended periods.
The arrangement is expected to help Nvidia sell more hardware and software while allowing financial partners to capitalize on the rapid growth of Nvidia's AI ecosystem. However, there are concerns about the potential for an AI infrastructure bubble, as the availability and price of capital could be weakened due to the financing of AI infrastructure.
Nvidia's founder and CEO, Jensen Huang, emphasized that AI infrastructure will power every industry and country in the age of AI, and Nvidia's compute is uniquely positioned to support this role.
Written by urgent.news from Tom's Hardware's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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