Nvidia has signed agreements with several major Wall Street firms to raise over $500bn for the datacentres, chip plants and power infrastructure underpinning the AI boom.

The company's CEO, Jensen Huang, called the deal "a major milestone for Nvidia and the AI industry" in a post on X, sharing a photo with finance leaders including Goldman Sachs' David Solomon.

Nvidia, now valued at $5.3tn, confirmed memorandums of understanding with Goldman, Apollo, BlackRock, Blackstone, Brookfield and KKR — though one source lists seven institutions, while Nvidia's own statement names six. The funding is aimed at what the industry calls "compute" — the hardware used to train and run AI systems.

Huang said many AI companies and cloud providers have demand for compute but lack access to financing at the scale or cost needed to build quickly, adding that the funding will make "AI factories" more accessible to firms and nations.

The move comes as big tech spending on AI is projected to exceed $730bn this year, but regulators have raised red flags. The Bank of England warned last month that AI debt financing could threaten financial stability if companies fail to deliver sustainable profits or face major disruptions.

The central bank noted the "unprecedented" pace of investment and cautioned that an adverse shock to AI companies could tighten global credit conditions, making loans harder and costlier for businesses and households. It also said banks and private credit firms may not have full visibility into their AI-related exposures due to varying transparency across funding sources.

Nvidia said the arrangements would create "dedicated pools of capital at significant scale at attractive rates" for its customers, but did not disclose individual firm commitments, financial terms, or a timeline for deploying the planned $500bn.

Huang framed the effort as infrastructure building: "Every industrial revolution has been built on infrastructure... AI factories are the infrastructure of the intelligence era."

Source: MarketWatch