Nvidia is partnering with Wall Street giants including Apollo, Blackstone, BlackRock, Brookfield, KKR and Goldman Sachs to mobilize over $500 billion in third-party capital for AI infrastructure. Goldman Sachs analysts estimate that hyperscalers have combined lease commitments for data centers, R&D facilities, offices and equipment totaling $1.5 trillion, up from approximately $200 billion five years ago, including $1 trillion in uncommenced commitments not yet shown in financial statements. The hedge fund Situational Awareness, which saw its assets collapse from $45 billion to roughly $10 billion after losses on leveraged equity bets, illustrates how vulnerable crowded, leveraged AI trades can be to sharp market sell-offs. Market watchers are debating whether eventual AI revenues can justify the scale of spending, with some analysts noting that the AI capex cycle is on track to be, adjusted for inflation, the largest investment cycle since 19th-century railway construction.
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