Wall Street Giants Partner With Nvidia On $500 Billion AI Financing Deal

Nvidia is working with Wall Street heavyweights on a potential $500 billion financing package for AI infrastructure. The consortium includes BlackRock's Global Infrastructure Partners, Brookfield Asset Management, Goldman Sachs and KKR. The Financial Times reports that the partnership underscores Nvidia's growing efforts to raise capital for itself and its clients. This effort aims to continue assembling the chips, power production and data centres at the heart of the AI boom.

Nvidia describes itself as a $5.25 trillion company positioned at the centre of the AI boom. It provides 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 financing is intended to support the continued assembly of chips, power production and data centres for those partners.

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 financing package discussed is one avenue through which such capital may be raised.

Jim Zelter, president of Apollo, said on an earnings call earlier this month that the sheer size of the AI infrastructure build-out is unprecedented. He noted that more than $8 trillion of capital is expected to be invested, a staggering sum. He sees an enormous opportunity for private capital to finance a portion of this along with public capital.