Nvidia Lands $500bn Funding Spree to Fuel AI Infrastructure Boom
Nvidia has secured $500bn in capital from Wall Street's largest banks and investors to fund its AI projects. The chipmaker is teaming up with firms like Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR to raise the funds for artificial intelligence infrastructure.
The financing will go towards Nvidia's own projects as well as those being built by its partners. Infrastructure projects backed by this fund include the construction of new data centres to house computer chips that process AI data and actions, and manufacturing new factories to produce the necessary chips.
Nvidia CEO Jensen Huang said that 'compute is revenue' in AI, implying that the company's hardware and infrastructure are essential for the development of artificial intelligence. He added that the financing will help create a new class of productive, investable infrastructure: AI factories.
Companies using Nvidia's popular chips include Google, Meta, Amazon, Microsoft, SpaceX, Tesla, OpenAI, and Anthropic, which have collectively spent over $1tn in just three years on AI projects and infrastructure. The demand for Nvidia's chips has driven the company's stock market value up fivefold in three years.