Nvidia, Wall Street Giants Join Forces To Unlock $500 Bn For AI

Nvidia is partnering with some of the world’s biggest investment firms to help mobilise up to $500 billion in financing for artificial intelligence (AI) infrastructure, according to a Bloomberg report.

The coalition includes Apollo Global Management, Blackstone, BlackRock, Brookfield Asset Management, Goldman Sachs and KKR. The firms will create “dedicated pools of capital at significant scale at attractive rates for Nvidia customers,” according to a joint statement.

Nvidia CEO Jensen Huang told CNBC that he approached only the six firms for the commitment and that none turned him down. The plan is aimed at helping large customers secure computing capacity as demand for AI infrastructure continues to grow.

How Will The $500-Bn Financing Work?

The financing is expected to focus mainly on debt, with Nvidia’s computing capacity being used as collateral, the news agency reported, citing a person familiar with the matter.

The debt could be raised through private offerings as well as bonds issued by special-purpose entities. These vehicles could raise tens of billions of dollars at a time and lease the computing capacity to Nvidia’s customers, according to the person.

The first such deals could come to the market within months. The computing equipment could also be moved to other buyers if needed, potentially allowing financing to be redirected and reducing the exposure for debt investors.

Goldman Sachs is the only bank among the six firms and is expected to act as lead bookrunner for public debt deals. Its asset-management arm could also distribute debt investments to clients.

In a post on X, Huang described Nvidia’s computing capacity as “an investable infrastructure asset” and said the company may provide financing support of “up to 25% of an opportunity.” He said the initiative would help “unlock a very large pool of independent capital” while maintaining disciplined risk exposure.

Nvidia’s Expanding AI Financing Push

The financing initiative comes as Nvidia deepens its involvement across the AI infrastructure ecosystem. The chipmaker has already entered into large investment and commercial agreements with AI companies, raising questions among some investors about the structure of such deals.

Nvidia had previously been in talks to backstop as much as $250 billion to help OpenAI lease computing power from a planned $500-billion, 10-gigawatt data-centre hub in Ohio, the news agency reported last month.

Nvidia was also reported to be discussing financing of up to $350 billion of OpenAI’s chip purchases for the project. Separately, the company has expanded its partnership with South Korea’s SK Group and said the two companies could conduct more than $500 billion in business with each other.

Wall Street firms have also been increasing their exposure to the AI data-centre boom. BlackRock, Microsoft and Abu Dhabi’s MGX investment vehicle, along with Nvidia, had earlier formed the AI Infrastructure Partnership to help finance data centres.

The latest initiative brings major private-capital firms together with Nvidia as the industry looks to raise the enormous amounts of capital required for AI data centres, power infrastructure and computing capacity.