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Nvidia and Broadcom use private capital to fund AI data center expansion
Nvidia is setting up customer financing platforms with major asset managers and banks, while Broadcom’s AI XPV platform targets over 20 gigawatts of compute capacity through 2028.
Nvidia and Broadcom are deepening their use of debt and private capital platforms to finance parts of the AI infrastructure buildout, according to Yahoo Finance. Nvidia has signed memorandums of understanding with Apollo Global Management, Blackstone, BlackRock, Brookfield Asset Management, Goldman Sachs and KKR to create financing platforms for Nvidia customers.
Under the approach, the companies are aiming to underwrite GPUs and data centers using institutional credit, insurance funds and private capital, rather than relying solely on Nvidia’s own balance sheet. Wolfe Research flagged that this structure could still carry longer term risk for Nvidia if the financing scales faster than expected or if deal assumptions shift.
Yahoo Finance also cites Wolfe’s scenario analysis, including that if Nvidia-powered data center spend reaches roughly 70% of targeted allocations, the deployment could translate into about $350 billion in Nvidia revenue. Nvidia CEO Jensen Huang noted the company has the option to backstop up to $125 billion, or 25% of the potential deals.
Broadcom is pursuing a similar financing strategy through an AI XPV Platform with Apollo and Blackstone, following a June announcement of a $35 billion institutional financing initiative. The plan is intended to enable more than 20 gigawatts in compute capacity using Broadcom XPUs and networking solutions customized for frontier AI labs through 2028, with Wolfe estimating the financing could imply $140 billion to $200 billion in combined revenue from OpenAI and Anthropic.