Nvidia teams up with six major asset management institutions to drive AI infrastructure financing, aiming to mobilize over $500 billion in capital

Odaily News: Nvidia CEO Jensen Huang announced that the company has partnered with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR to establish an independent financing platform, planning to mobilize more than $500 billion in third-party capital over the long term to support AI infrastructure construction.

Huang stated that the AI industry is transitioning from a phase where "enterprises buy chips and build data centers project by project" to a new stage where AI factories are treated as financeable, productive infrastructure. AI computing power is becoming an investable asset, characterized by long-term institutional capital support, repeatable construction, and usage by diverse customers.

Nvidia noted that AI factories include not only GPUs but also high-speed networking, system software, AI frameworks, and the CUDA ecosystem. Because they are built on widely adopted architectures, AI factories can serve different customers, cloud providers, and application scenarios, and possess strong asset liquidity and residual value.

In this collaboration, Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR will independently evaluate specific projects, including customer demand, computing utilization, cash flow, and asset value. Nvidia will provide the AI factory platform, while the financial institutions will handle long-term capital and financing capabilities.

Huang indicated that in some projects, Nvidia may provide up to 25% residual value support, but this will be carefully assessed on a project-by-project basis. The mechanism is designed to complement, not replace, the independent judgment of institutional investors.

He believes that AI factories will become "the infrastructure of the intelligent era," much like how electricity, transportation, and communication infrastructure drove the previous industrial revolutions. In the future, growing demand for AI computing will form a cycle where "more computing power drives stronger AI, stronger AI creates more revenue, and more revenue further fuels demand for computing power."