Nvidia is partnering with six Wall Street giants, including BlackRock, Blackstone, Apollo, Brookfield, Goldman Sachs and KKR, to mobilize 500 billion dollars in financing for artificial intelligence infrastructure. The coalition will provide dedicated pools of capital at attractive rates for Nvidia customers, primarily in the form of debt. Compute power will be used as collateral for these loans, taking the form of private offerings and bonds issued by specialized vehicles, with amounts potentially reaching tens of billions of dollars per transaction. Nvidia may contribute up to 25 percent of the financing, and the first transactions are expected to begin within months. Some investors are concerned about the circular nature of these deals, fearing the chipmaker may be artificially inflating demand and valuations across the sector.
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