Goldman in talks with investors on Nvidia financing deal after landing prized role, sources say
Goldman Sachs is engaged in discussions with potential investors regarding participation in Nvidia's $500 billion AI financing initiative, as revealed by sources familiar with the matter. The deal, which involves major financial institutions, is a result of Goldman's strong relationship with the chipmaker. The financing aims to raise capital for AI infrastructure, with asset managers planning to take a significant share.
Goldman Sachs is expected to provide junior capital and private credit financing through its asset management arm, while its investment bank will assist in placing the debt in private credit funds and public debt markets. This role marks a culmination of years-long ties between Goldman Sachs and Nvidia, with the bank offering advice on various transactions and technology financing deals involving Nvidia.
The financing structure differs from previous AI infrastructure deals, which relied heavily on vendor guarantees. Nvidia has the option to backstop up to $125 billion in the deal, aiming to create an asset-backed market for AI compute. The move highlights the growing demand for AI computing capacity, as governments, companies, and startups seek to build data centers to support AI workloads.
Written by urgent.news from CNA - Business's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
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