The Goldman Sachs Group (GS)’s CEO Says He Has “a Deep Belief” in NVIDIA Corporation (NVDA). Reuters Compares the Deal to Auto Loans

Goldman Sachs CEO David Solomon expressed his "deep belief" in NVIDIA Corporation during a CNBC interview about the company's $500 billion AI infrastructure financing plan. Solomon's comments were made alongside NVIDIA CEO Jensen Huang and other Wall Street executives on CNBC's Closing Bell Overtime. The deal, according to a Reuters Breakingviews column, is reminiscent of auto loans, with computing power serving as collateral and NVIDIA as the driver, while Goldman Sachs is merely along for the ride.

This comparison raises the question of whether Goldman Sachs' involvement indicates that compute is now a legitimate lending category or if Wall Street is simply capitalizing on the latest trend. NVIDIA's plan relies on Goldman Sachs and its partners raising the required third-party capital, highlighting the fact that the $500 billion is not NVIDIA's own money.

However, the success of the AI buildout depends on Goldman Sachs' ability to raise the necessary funds, an aspect beyond NVIDIA's control. Solomon highlighted Goldman's extensive distribution network and deep conviction in the AI direction, emphasizing the company's efforts to create optimal capital access for those involved in the AI buildout.