Nvidia partners with Wall Street firms on $500B AI infrastructure financing plan

Nvidia and six of the world's largest investment firms announced plans last week to channel more than $500 billion (€433bn) into AI infrastructure, an arrangement designed to let tech companies build data centres without loading the cost onto their own balance sheets.

Nvidia’s $500 billion artificial intelligence financing initiative that was announced Monday (Aug. 10) aims to assure the company’s investors that there is plenty of financing available to the AI startups and other companies that buy or use the firm’s chips, Bloomberg reported Friday (Aug. 14). The initiative is also meant to expand Nvidia’s customer base […] The post Nvidia Uses $500 Billion Financing Initiative to Dispel AI Bubble Fears appeared first on PYMNTS.com.

Goldman Sachs is talking with potential investors about participating in Nvidia’s $500 billion artificial intelligence financing initiative that was announced Monday (Aug. 10), Reuters reported Friday (Aug. 13). Goldman Sachs has talked with banks, asset managers, insurers and private credit firms, according to the report. The firm’s investment bank can help place the debt into […] The post Goldman Sachs Mobilizes Investors for Nvidia’s $500 Billion AI Infrastructure Push appeared first on PYMNTS.com.

Goldman Sachs Group Inc., Blackstone Inc. and Apollo Global Management Inc. had been working tirelessly for months to draw up debt deals that would help developers of artificial intelligence systems pay for chips from Nvidia Corp.With slow progress on the complex deals, Nvidia’s chief executive officer, Jensen Huang, decided to change tack: He went public this week with the effort, saying the group is aiming to collectively finance AI computing deals totaling $500 billion — a round figure with no obvious provenance.In doing so, he was seeking to assure Nvidia’s investors that there are plenty of deep-pocketed firms ready to finance his clients, particularly AI startups such as Anthropic PBC and OpenAI that are key to Nvidia’s future demand. While he’s bullish on AI spending overall, his company has been seeking to broaden its customer base beyond hyperscalers including Microsoft Corp. and Amazon.com Inc., many of which are trying to create their own components.Huang wanted something else, too. After months of working with the trio of financiers, his $5.5 trillion firm called the original group up just days before the announcement to say that three other lenders — KKR & Co., BlackRock Inc. and Brookfield — were joining the pack and committing to financing a chunk of the debt.With the partnership out in the open, some of the largest firms on Wall Street are standing by to arrange hundreds of billions of dollars in financing for chip deals, while Nvidia itself will backstop a portion of those deals with guarantees. No deals were signed by the time of the announcement, which was left deliberately vague, according to people familiar with the matter who asked not to be identified discussing private talks.Investors have been concerned that Santa Clara, California-based Nvidia, whose chips are crucial in many of the data centers powering the global AI surge, and other companies have been stoking a bubble in the industry through circular financing. That’s been fueled by deals where Nvidia has invested in some of its clients such as CoreWeave Inc.Initially, the financing venture’s framing unnerved debt investors, concerned about how exposed it left the chipmaker to more leverage. But that eased as Huang clarified that Nvidia’s support would be for as much as 25% of an opportunity and the firm would assess each project on a case-by-case basis.133249846“The announcement reflects the financing need as we look to build out digital and AI related infrastructure in the coming years,” Alan Synnott, global head of real assets at advisory firm Mercer, said in an interview. “With these partnerships, you’ll actually see a range of strategies developing likely across infrastructure, real estate credit, and maybe even private equity that will offer investors a lot more access paths.”Representatives for Goldman, Apollo, Blackstone, KKR and BlackRock declined to comment. A Nvidia spokesperson had no immediate response, while a representative for Brookfield didn’t respond to a request for comment.Earlier this week, when Huang appeared with executives from the six firms on CNBC to talk up the deal, the segment lasted more than 30 minutes and included few additional details. Goldman CEO David Solomon, Blackstone President Jon Gray, Apollo President Jim Zelter and Brookfield CEO Bruce Flatt appeared in studio with Huang, while KKR’s Waldemar Szlezak, who leads its digital infrastructure business globally, also joined. BlackRock CEO Larry Fink was on video while traveling.Now, those executives are turning to their clients, including sovereign wealth funds, pension funds and insurance firms, to gauge their appetite for buying up the debt. Executives in the television discussion indicated that some of the money could come from retail investors.The $500 billion commitment has no set time frame and is a combination of deals that have been discussed, as well as forecasts of demand in the near future, according to people familiar with the matter. Each lender will be able to vet individual customers for creditworthiness before committing.While much of the total amount will be raised through private credit markets, the scale is so large that public markets will need to be tapped. That’s expected to come in the form of bonds — many set to be tens of billions of dollars each — issued by special vehicles that would lease chips to Nvidia clients.One person involved in the announcement described Huang’s intention as setting up a debt shopfront as an advertisement to customers and concerned investors. If the deals don’t happen as announced or go awry, that could pose a risk to the reputation of the financing partners and Nvidia, the person said.For some of the financing partners, the venture promises that the companies will be in line to collect fees from the deals. While Goldman is the only firm with a dedicated banking arm, Apollo could also unlock more fees as it expands its trading operation, selling larger chunks of the loans it originates to other investors and making markets for clients.For Goldman, it’s the culmination of years of building up close ties to the chipmaker. Jung Min, who was named Goldman’s co-head of its technology, media and telecom practice last year after two decades at the firm, has covered Nvidia for years from his San Francisco base. Toshiya Hari, the former Goldman analyst who covered Nvidia, joined Nvidia last year to work in investor relations.The splashy affair contrasts with a similar announcement from Broadcom Inc. just weeks earlier. The chipmaker tapped Apollo and Blackstone as anchor investors for plans to finance more than 20 gigawatts of compute capacity for frontier AI labs including Anthropic and OpenAI through 2028 — potentially requiring hundreds of billions of dollars.Broadcom, however, already had $35 billion of financing in hand through a deal with Apollo and Blackstone when it unveiled the partnership.Broadcom backstopped most of the debt on that first deal to help attract investors, while Apollo structured the deal to keep the borrowing off Broadcom’s balance sheet. Blackstone has already sounded out investors for another transaction of more than $30 billion, Bloomberg reported.The Nvidia debt deals will vary according to the type of customer and the owner of the data centers that will house the chips. The collateral that backs the loans is expected to be some combination of the underlying chips and the offtake agreements, said some of the people.If a deal goes awry and Nvidia clients can’t afford the chips, the chips can be rented by others, helping to reduce the risk of individual Nvidia customers defaulting on the debt, according to some of the people.Skeptics say that valuations of the underlying chips is currently inflated by record demand, driven by the hype around AI. One of the worries is that the intense buildup of AI infrastructure might fuel an oversupply of computing power years in the future.For all the questions, there’s no doubt other banks and investment firms still want in. JPMorgan Chase & Co.’s asset management arm, for one, is discussing how it can be involved as well, according to a person familiar with the matter. A spokesperson for the bank declined to comment.And just minutes after Monday’s announcement, Morgan Stanley, long a significant lender to AI infrastructure, put out a release saying it was launching a framework to facilitate $1.5 trillion of funds in US innovation and national security. Top of its list: AI and advanced computing.

U.S. insurers, money managers, and banks are expected to form the core investor base for the deal, which Nvidia announced earlier this week

Goldman Sachs has secured the role every Wall Street firm wanted, and it is now working the phones. The bank is in talks with investors about Nvidia’s $500bn AI-compute financing deal, having landed a prized mandate that effectively casts it as the lead, and for now near-sole, lender behind one of the largest infrastructure-funding efforts […] This story continues at The Next Web

Nvidia’s $500B financing push could change how operators fund AI infrastructure, while power and interconnection remain critical constraints on deployment.

US investment giants including Apollo, Blackstone, BlackRock, and Brookfield are partnering with Nvidia to source $500 billion in financing for artificial intelligence infrastructure. Bloomberg's Michelle Davis reports on "Bloomberg Deals." (Source: Bloomberg)

Nvidia is partnering with six major Wall Street asset managers on a $500 billion financing push meant to turn AI chips into a new class of asset that can be borrowed against, similar to commercial real estate or toll roads. The post AI Boom: Nvidia Lines Up $500 Billion in Financing from Wall Street Partners appeared first on Breitbart.

Nvidia collaborates with leading investment firms to secure funding for artificial intelligence infrastructure. This partnership aims to amass hundreds of billions of dollars for AI advancements and improve accessibility to Nvidia's high-performance computing resources. By engaging independent financial institutions, the initiative guarantees real demand for AI solutions, paving the way for a novel financing approach in the rapidly evolving AI sector.

US investment giants including Apollo Global Management Inc., Blackstone Inc., BlackRock Inc. and Brookfield Asset Management are partnering with Nvidia Corp. to source $500 billion in financing for artificial intelligence infrastructure.  Bloomberg's Ed Ludlow joins to discuss this as well as Intel raised $20 billion in an upsized share sale, a third more than it was targeting when it announced the deal Monday morning. (Source: Bloomberg)

Nvidia scored an astounding $500 billion in financing for artificial intelligence, backed by Wall Street's top power brokers and firms. Puck founding partner and industry journalist William D. Cohan weighs in on the AI boom and data center construction.

Nvidia secured a $500 billion commitment from six Wall Street firms — including Apollo, Goldman Sachs and BlackRock — to finance AI infrastructure. Bloomberg's Silas Brown reports on Big Tech’s growing reliance on private markets to power the AI boom on Bloomberg Open Interest. (Source: Bloomberg)

Nvidia CEO Jensen Huang said on X that the company has the option to backstop up to $125 billion, or 25% of the potential deals.

  Nvidia said on Monday it would partner with six of the largest names in private capital to finance AI infrastructure through vehicles worth more than $500 billion. Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR are all in. The company has spent recent months lending its own balance sheet to customers so they could […] This story continues at The Next Web

The funding will be used to build AI infrastructure and establish compute and full-stack infrastructure as an “investable asset class.”

Blackstone, BlackRock, Goldman Sachs and others will create dedicated debt pools for Nvidia's customers, deepening scrutiny of its circular AI deals.

Nvidia, Blackstone, Goldman Sachs and other major firms are nearing a deal to fund AI infrastructure. Nvidia's stock dropped anyway.

The chipmaker signed MOUs with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR to treat AI compute as a financeable asset class

Nvidia has signed memorandums of understanding with six major Wall Street firms to establish "AI compute" as a bankable infrastructure asset.

Nvidia has recruited six of the largest names in finance to help turn its chips into something a bank can lend against. The company announced partnerships with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to build what it calls “compute financing platforms”, structures designed to mobilise over $500bn of third-party capital for AI infrastructure. […] This story continues at The Next Web

The money will be used to develop new data centres to house, operate, and cool miles of stacked computer chips that process AI data and actions.

US investment giants including Apollo Global Management Inc., Blackstone Inc., BlackRock Inc. and Brookfield Asset Management are coming together ‘to create pools of capital at attractive rates for Nvidia customers’

Apollo, BlackRock, Goldman Sachs and KKR among those working with chipmaker to fund infrastructureNvidia ⁠has partnered with six major Wall Street financial institutions to raise ⁠more than $500bn (£370bn) capital for artificial intelligence infrastructure.The Nvidia chief executive, Jensen Huang, said on X that the company has ⁠the option to backstop up to $125bn, or 25% of the potential deals. Continue reading...

Nvidia has joined forces with six prominent financial institutions to enhance AI infrastructure funding. The collaboration will see these firms create platforms aimed at financing companies that purchase Nvidia hardware. The goal is to harness over $500 billion in external capital, positioning AI chips as a fresh asset class that encourages the growth of AI technology and data centers.

Wall Street groups are working with the chipmaker to assemble a $500bn funding package for AI infrastructure

Nvidia late Monday announced a partnership with seven Wall Street financial institutions designed to raise more than $500 billion of third-party capital to fund the buildout of AI infrastructure.

In an ambitious collaboration, Nvidia is joining forces with six prominent financial institutions to establish compute financing platforms with the goal of unlocking upwards of $500 billion in third-party investment for AI infrastructure.

The chipmaker has signed MoUs with Apollo Global Management, Blackstone, BlackRock, Brookfield Asset Management, Goldman Sachs and KKR to establish financing platforms for its customers, Nvidia said.

Nvidia has signed memorandums of understanding to mobilise a staggering $US500 billion in third-party capital for AI infrastructure.

Nvidia has signed memorandums of understanding to mobilise a staggering $US500 billion in third-party capital for AI infrastructure.

US investment giants including Apollo Global Management Inc., Blackstone Inc., BlackRock Inc. and Brookfield Asset Management are partnering with Nvidia Corp. to invest $500 billion in artificial intelligence infrastructure. (Source: Bloomberg)

The financing platform initiative aims to broaden access to Nvidia-based infrastructure among frontier AI developers.

Nvidia signed MoUs with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR

Nvidia has partnered with six financial institutions to establish independent compute platforms designed to mobilize over $500 billion of third-party capital for the buildout of artificial intelligence infrastructure, the company said in a Monday (Aug. 10) press release. The firms with which the AI chip manufacturer has announced these strategic partnerships are Apollo, BlackRock, Blackstone, […] The post Nvidia Forms Financial Partnerships to Fuel AI Factory Boom appeared first on PYMNTS.com.

Get ready to hear the phrase "circular dealmaking" a lot more, again.

Nvidia is working with Wall Street heavyweights on a potential $500 billion financing package for AI infrastructure (source paywalled; alternative source). The consortium includes BlackRock's Global Infrastructure Partners, Brookfield Asset Management, Goldman Sachs and KKR. The Financial Times reports: The partnership underscores Nvidia's growing efforts to raise capital for itself and its clients to continue assembling the chips, power production and data centres at the heart of the AI boom. The $5.25 trillion company has positioned itself at the centre of the AI boom, providing chips, infrastructure and software to a wide array of partners developing the technology. Nvidia's graphics processing units, or GPUs, underpin most of the leading US AI models available today. [...] The biggest cloud-computing companies, including Meta, Oracle, Microsoft, Alphabet and Amazon, have dramatically increased their spending on AI infrastructure as they look to win the race to dominate the emerging technology. Morgan Stanley projects so-called hyperscalers will spend $3.5 trillion between 2026 and 2028. That need for capital has forced technology groups to tap every source of cash they can find, including public equity, investment-grade and high-yield bonds, securitized debt, private credit and project finance markets. "[The] sheer size of the AI infrastructure build-out is unprecedented," Jim Zelter, president of Apollo, said on an earnings call earlier this month. "More than $8 trillion of capital is expected to be invested, a staggering sum. We see an enormous opportunity for private capital to finance a portion of this along with public capital." Read more of this story at Slashdot.

The capital package highlights the growing role of private capital in financing the costs of the artificial intelligence boom.

A group of financial firms is working with Nvidia on a $500bn funding package for AI infrastructure. The group covers Apollo Global Management, Blackstone, BlackRock’s Global Infrastructure Partners, Brookfield Asset Management, Goldman Sachs and KKR. The Financial Times reported the talks first. Bloomberg confirmed them with people familiar with the matter. A deal could land […] This story continues at The Next Web

Apollo, Blackstone and BlackRock were among the firms that committed to the deal.

A group of US investment giants are partnering with Nvidia on US$500 billion in funding for AI infrastructure projects, the Financial Times reported. Apollo Global Management, Blackstone, BlackRock’s Global Infrastructure Partners, Brookfield Asset Management, Goldman Sachs and KKR are among the firms in talks with Nvidia on a deal to invest in the AI buildout, the Financial Times reported, citing unidentified sources. The deal may be announced as soon as Monday, the Times said. The named firms...

A group of US investment giants are nearing a partnership with Nvidia Corp. on $500 billion in funding for the buildout of AI infrastructure, according to people familiar with the matter.

A group of US investment giants are partnering with Nvidia Corp. on $500 billion in funding for AI infrastructure projects, the Financial Times reported.

Apollo, Blackstone and Goldman Sachs are among groups working with the chipmaker to raise capital for data centre boom

Highlights Nvidia's efforts to raise capital for ​the chips, power generation and data centres underpinning AI boom