Nvidia to team with Wall Street on US$500 billion package for AI infrastructure projects

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 did not respond to requests from the Times for comment. Nvidia did not immediately respond to a request for comment. The company’s shares fell by as much as 3.2 per cent.

Nvidia has already signed hundreds of billions of dollars worth of deals with companies across the AI ecosystem, stoking concerns from some investors that the chips giant is inflating demand and valuations across the industry through the circular nature of such agreements.

The company just last month expanded a partnership with South Korean conglomerate SK Group and said the companies will be doing more than US$500 billion in business with each other. It was also in talks to backstop as much as US$250 billion to help OpenAI lease computing power from a US data centre project in what would be among the chipmaker’s biggest financing deals with a customer.

The Financial Times report did not detail which projects or companies the funding would back, the nature of the funding or whether the US$500 billion represented new commitments or already existing ones.