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Nvidia partners with Wall Street firms on $500bn AI financing platforms
The chipmaker said it can backstop up to $125bn, or 25% of the potential deals, while forming financing pools with Apollo, BlackRock, Goldman Sachs and KKR.
Nvidia has partnered with six major Wall Street financial institutions to set up AI financing platforms aimed at funding infrastructure for artificial intelligence compute, with the effort targeting more than $500bn of capital, according to the Guardian Business.
The firms named in the memorandums of understanding include Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR. Nvidia said the platforms will let third party investors treat AI compute as an asset class, creating dedicated pools of capital for customers at what it described as attractive rates.
Nvidia CEO Jensen Huang said the company has the option to backstop up to $125bn, equivalent to 25% of the potential deals. The article also notes Nvidia did not disclose the financial terms, individual firm commitments, or a timetable for deploying the planned $500bn.
The deal comes as demand for AI computing capacity draws institutional investors, and the article cites forecasts that combined big tech spending on AI is set to surpass $730bn this year. Nvidia, valued at $5.3tn, counts Google, Amazon, Microsoft and Meta among its customers.