Nvidia is working with a group of major US investment firms on a package of $500 billion in funding for artificial intelligence infrastructure projects, the Financial Times reported on Monday, in a story carried by Bloomberg.
Apollo Global Management, Blackstone, BlackRock's Global Infrastructure Partners, Brookfield Asset Management, Goldman Sachs and KKR are among the firms in talks with the chipmaker, the FT said, citing unidentified sources. The deal could be announced as soon as Monday, according to the report. The named firms did not respond to the FT's requests for comment, and Nvidia did not immediately respond to a request for comment.
The FT report did not specify which projects or companies the funding would back, the nature of the funding, or whether the $500 billion represents new commitments or commitments already in place.
Nvidia's shares fell by as much as 3.2 percent on the news. The company has already signed deals worth hundreds of billions of dollars across the AI ecosystem, raising concerns among some investors that it is inflating demand and valuations across the industry through the circular nature of such agreements, the report said.
Last month, Nvidia expanded its partnership with South Korean conglomerate SK Group, with the two companies saying they will do more than $500 billion in business with each other. Nvidia is also in talks to backstop as much as $250 billion to help OpenAI lease computing power from a US data centre project, in what would be among the chipmaker's largest financing deals with a customer, according to the report.
Sources
- South China Morning Post (Bloomberg): [Nvidia to team with Wall Street on US$500 billion package for AI infrastructure projects](https://www.scmp.com/news/article/3363577/nvidia-team-wall-street-us500-billion-package-ai-infrastructure-projects)
- TechPowerUp (Reuters): [NVIDIA Reportedly Plans $500 Billion Funding Partnership with Wall Street](https://www.techpowerup.com/351490/nvidia-reportedly-plans-usd-500-billion-funding-partnership-with-wall-street)
