"It's an ad for customers and investors," one person involved said, as Nvidia lines up Apollo, BlackRock and others to fund chip purchases and ease bubble fears.
Nvidia rolled out a $500 billion AI financing initiative Monday, a move designed to reassure investors that cash is not the bottleneck for the infrastructure buildout that underpins its chip sales.
The program brings together Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR. The six firms will set up independent compute platforms to mobilize third-party capital for Nvidia customers, according to the company. Final agreements are still being signed.
One person involved described the whole project as an advertisement – to customers and to investors, Bloomberg reported Friday. The idea is to expand Nvidia's customer base beyond the hyperscale cloud operators, some of which are designing their own chips. It also addresses a worry that has dogged the stock: that Nvidia's own investments in AI startups create a circular flow that could end in a bubble.
Goldman Sachs is already talking with potential investors, including banks, asset managers, insurers and private credit firms, the report said. The bank's investment arm can place debt into private credit funds and public debt markets; its asset management side can provide junior capital and private credit financing.
Nvidia CEO Jensen Huang framed the initiative in a press release as a math problem. "In AI, compute is revenue," he said. He argued that Nvidia's chips are broadly adopted, flexible across models and workloads, and get better over time through the CUDA software layer – extending their useful life and improving the economics.
The announcement came as the stock – down about 0.06% to $225.16 – carries an Alpha Score of 78, the "Strong" label on NVDA stock page.
The six financial partners are not committing their own balance sheets in a single lump sum. Each will set up a dedicated pool of capital, offered at "attractive rates" for Nvidia customers. The goal is to unlock more than $500 billion over time for AI data centers, power and networking gear. The structure is meant to show that the financing exists, at scale, from some of the largest names on Wall Street – and that the AI buildout has not hit a credit ceiling.
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