Nvidia partners with Wall Street giants to raise $500 billion for AI buildout

Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST

Aug 10 : Nvidia said on Monday it has partnered with six major financial institutions to launch compute financing platforms aimed at raising over $500 billion in third-party capital for AI infrastructure.

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

The move highlights how surging demand for AI computing capacity is drawing institutional investors, as governments, companies and startups race to build out data centers to support AI workloads.

Big Tech companies have signaled that spending on AI would ​not slow down, with combined outlays set to surpass $730 billion this year.

CNA Games

Guess Word
Crack the word, one row at a time

Buzzword
Create words using the given letters

Mini Sudoku
Tiny puzzle, mighty brain teaser

Mini Crossword
Small grid, big challenge

Word Search
Spot as many words as you can
Show More
Show Less

Nvidia signed memorandums of understanding with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR for the financing platforms. 

The initiative is intended to broaden access to Nvidia-based infrastructure among frontier AI developers, enterprises, governments and cloud providers, while creating longer-duration, usage-linked investment opportunities for large asset managers and private capital firms.

"These financing platforms will help customers access scarce compute at scale and build the AI factories that will power every industry and country in the age of AI," Huang said.

Nvidia said the arrangements would "create dedicated pools of capital at significant scale at attractive rates" for its customers.

The company did not disclose the financial terms, investment commitments by individual firms or a timetable for deploying the planned $500 billion.

The Financial Times had reported the development first on Monday, later confirmed by Reuters. 

Newsletter

Week in Review

Subscribe to our Chief Editor’s Week in Review

Our chief editor shares analysis and picks of the week's biggest news every Saturday.

Sign up for our newsletters

Get our pick of top stories and thought-provoking articles in your inbox

Subscribe here

Get the CNA app

Stay updated with notifications for breaking news and our best stories

Download here

Get WhatsApp alerts

Join our channel for the top reads for the day on your preferred chat app

Join here