Nvidia, Wall Street firms partner on $500 billion AI financing venture, source says

A group of financial firms, including Apollo Global ​and Blackstone, is working with Nvidia to put together ‌a $500 billion funding package ‌for AI infrastructure development, a person familiar with the matter told Reuters on Monday.

Nvidia’s shares fell ​over 3% in afternoon trading.

The tie-up highlights Nvidia’s efforts to raise capital for the chips, power ​generation and data centers underpinning the AI boom.

Big Tech companies have signaled that spending ​on AI would not slow down, with combined outlays ​set to surpass $730 billion this year.

The group, which also includes BlackRock’s Global Infrastructure Partners, Brookfield Asset Management, Goldman Sachs and KKR, is in talks to partner with Nvidia on the AI build-out, according to the Financial Times, which reported the development first.

BlackRock and KKR declined to comment when contacted by Reuters, while Nvidia and the other companies did not immediately respond to requests.

Nvidia said in June it would raise $25 billion through a U.S. bond issuance, as it ⁠taps the debt market to increase liquidity for the first time since 2021.

Intel said on Monday it ⁠was ⁠planning to raise $15 billion through ⁠a share sale, as it looks to fund the costly build-out of ​its chip contract manufacturing business by cashing in on a stock surge fueled by its turnaround efforts.

Once ‌a dominant force in the global ‌chip industry, Intel is investing heavily in new facilities and advanced packaging capabilities as it seeks ⁠to challenge ⁠industry leaders such as TSMC in contract chip manufacturing.

Its shares fell more ​than 4% in early trading. As of last close, the stock has nearly tripled this year, outperforming rivals AMD and Nvidia and the Philadelphia Semiconductor Index’s nearly 75% rise.

Several analysts have said Intel’s surging share price ​has increased the chances of an equity raise to help fund its expansion plans.

“As a ⁠capital-intensive ⁠business that went a long ⁠way to wrecking ​its own balance sheet and prospects by focusing on financial engineering rather than physical engineering, ​courtesy of $82 billion of share ⁠buybacks in the 2010s, it makes perfect sense for Intel to raise money, especially after a five-fold increase in the stock price since last August,” said Russ Mould, investment director at AJ Bell.