Nvidia is joining forces with Wall Street to allow its customers to borrow over $500 billion to build AI infrastructure. The US chipmaker announced a preliminary agreement with heavyweight institutional investors Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR to raise the funds for lending.
AI Compute as an Investable Asset Class
Nvidia CEO Jensen Huang stated that AI compute, the hardware and software underpinning AI models, is developing into an investable asset class, which he referred to as AI factories. This new financing platform aims to make it easier for smaller, start-up AI companies to borrow money to buy compute, the processing power needed to train and build their models.
Apollo President Jim Zelter noted that modern compute has emerged as a scarce, mission-critical asset class with compelling investment characteristics. However, some investors have grown nervous about the amount of money and debt-financed investment swirling around the sector, raising concerns that demand for AI may be artificially inflated.
Original reporting: KRDO (Colorado Springs metro) — read the source article.
