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Nvidia banks line up $500bn to fund AI compute infrastructure
The financing will support new data centers and AI chip factories, with banks treating AI hardware and infrastructure, or compute, as a separate asset class for the first time.
Nvidia has partnered with major Wall Street banks to raise $500 billion to build artificial intelligence infrastructure, including new data centers designed to house, operate, and cool large stacks of AI chips, BBC Business reports. The chipmaker said the capital also will back new factories to manufacture the AI chips needed for these systems.
BBC Business reports that the banks involved include Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR. Nvidia said the institutions are, for the first time, treating AI hardware and infrastructure, often referred to as compute, as a separate asset class.
Nvidia CEO Jensen Huang said, in the context of the deals, that compute is revenue, and framed the effort as bringing long-term capital providers together to underwrite AI infrastructure. KKR executives Joe Bae and Scott Nuttall said compute has become critical infrastructure, with delivery rather than ambition the harder part.
BBC Business also noted that Nvidia GPUs are used across the AI boom, and that large technology firms have collectively spent more than $1 trillion on AI projects and infrastructure over the past three years. Nvidia’s market value has risen about fivefold over that period, as demand for its chips and services increased.