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Nvidia and major Wall Street firms plan AI compute financing platforms
The program targets more than $500 billion in outside capital for AI infrastructure, with Nvidia able to backstop up to $125 billion or 25% of deals.
Nvidia said it is partnering with Apollo, Blackstone, BlackRock, Brookfield, Goldman Sachs, and KKR to launch what it calls compute financing platforms, designed to raise more than $500 billion in outside capital for AI infrastructure, according to Yahoo Finance.
Nvidia CEO Jensen Huang said the company could backstop up to $125 billion, or 25%, of potential deals, and he argued that Nvidia hardware is broadly used and transferable across customers, allowing lenders to treat compute as long lived infrastructure rather than equipment that rapidly depreciates.
Blackstone President Jon Gray said on CNBC that AI compute should be viewed as a financeable asset class similar to how mortgage lenders evaluate homes, with Nvidia aiming to widen the set of buyers that can afford chips by helping customers finance purchases off their own balance sheets.
The effort follows existing Nvidia initiatives, including a memory partnership with SK Hynix and a reported financing guarantee for a 10 gigawatt Ohio data center leased to OpenAI, while Nvidia faces scrutiny over potential circular financing, and shares reportedly fell after the deal was first reported, erasing more than $70 billion in market value.