Nvidia's Wall Street Partnerships Aim to Raise $500 Billion for AI Data Centers

Nvidia has partnered with six major Wall Street firms to raise over $500 billion in capital for AI data centers. The partnerships, which are non-binding memorandums of understanding (MOUs), aim to create compute financing platforms that will pool capital to lend to Nvidia customers building AI data centers.

The firms involved are Apollo Global Management, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR. Nvidia CEO Jensen Huang said GPUs have become 'revenue-generating assets' that can be financed like toll roads or power plants.

However, analysts at Bank of America estimate that the big hyperscalers will spend $860 billion on AI capital expenditures in 2026 and $1.2 trillion in 2027. Nvidia controls around 85% of the market for AI GPUs.

The deal may not be as bullish as it seems, with some investors wary of its sustainability due to the hyperscalers' reliance on bond markets and stock sales.