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A group of Wall Street’s biggest investment firms wants to hand Nvidia $500 billion for AI infrastructure, but not everyone is jumping for joy, according to Bloomberg. Apollo Global Management, Blackstone, BlackRock, Brookfield Asset Management, Goldman Sachs and KKR are among the firms in talks, with a deal possibly landing as soon as Monday. It’s not yet clear which projects the money would back, or whether the commitments are brand new or stuff Nvidia already agreed to spend.
Meanwhile, Nvidia’s stock dropped 2.2% the same day the news broke. Some investors are concerned about Nvidia’s dealmaking. The chip company has already signed hundreds of billions of dollars in agreements across the AI industry, including talks to guarantee up to $250 billion in financing so OpenAI can lease computing power from a massive Ohio data center. Investors worry these arrangements, where Nvidia funds the very companies buying its chips, are inflating demand and valuations across the industry rather than showing real growth.
Nvidia keeps chugging along regardless, recently expanding a partnership with South Korea’s SK Group worth more than $500 billion and making a “substantial” investment in Ilya Sutskever’s Safe Superintelligence.