NVIDIA Corporation (NVDA) & KKR & Co (KKR): Wall Street Just Endorsed Jensen Huang’s “Big Concept.” What Happens Next?
On August 10, NVIDIA CEO Jensen Huang proposed a $500 billion financing plan for AI data centers alongside leaders from major financial firms including Goldman Sachs, BlackRock, Blackstone, and KKR. KKR's head of digital infrastructure, Waldemar Szlezak, described the new approach as creating a revenue stream. NVIDIA had previously attempted a similar move to invest up to $100 billion in OpenAI, but that investment never fully materialized.
Critics argue that the value of NVIDIA's chips may decrease over time, as customers continue to use older-generation GPUs for longer periods. China's increased domestic chip production could also pose a risk by flooding the market with cheaper silicon. KKR has experience turning infrastructure investments into public capital, having recently participated in a €500 million rights issue for German satellite maker OHB.
However, KKR is entering this financing structure without a proven track record. While the potential for AI stocks is acknowledged, this article suggests that some other AI stocks may offer greater upside potential with less risk.
Written by urgent.news from Yahoo Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
