Nvidia reaches $500 billion AI financing deal with Wall Street firms

Financing would involve multiple vehicles, not one large collaboration

Nvidia reached a deal with six of Wall Street’s largest firms to help raise $500 billion to fund the AI infrastructure build-out, according to people familiar with the matter.

Apollo Global Management, Blackstone, BlackRock, Brookfield Asset Management, Goldman Sachs and KKR agreed to help Nvidia assemble the financing, the people said. The deal could be announced as soon as Monday.

The massive financing would involve different vehicles rather than one large collaboration, one of the people said. The commitments could grow larger than $500 billion over time, this person said.

The deal comes as spending commitments on data centers and other AI infrastructure have reached levels The Wall Street Journal described as eye-popping. Banks and investment firms have been rushing to finance the boom in increasingly creative ways, the report said.

Nvidia has been in talks with OpenAI to provide a roughly $250 billion backstop for a data-center project, The Wall Street Journal reported last month. Meta Platforms just partnered with BlackRock on an off-balance-sheet financing for a new data center in Texas.

The Financial Times earlier reported the Nvidia financing deal. The financing could help signal to stock investors that Nvidia and its partners in the AI boom have the firepower to build the infrastructure they need, according to the report.

Debt investors have lent companies hundreds of billions of dollars over the past year through direct bond sales and debt deals tied to individual data-center projects, the report said.

Since June, bond investors have doubled the incremental yield they demand to lend to Nvidia to about 0.40 percentage point over comparable Treasury bonds, according to pricing service Solve.