Nvidia gets $500bn from major investors to develop AI infrastructure<br>Skip to content
Home<br>News<br>US & Canada<br>UK<br>UK Politics<br>England<br>N. Ireland<br>N. Ireland Politics<br>Scotland<br>Scotland Politics<br>Wales<br>Wales Politics<br>Africa<br>Asia<br>China<br>India<br>Australia<br>Europe<br>Latin America<br>Middle East<br>In Pictures<br>BBC InDepth<br>BBC Verify<br>Sport<br>Business<br>World of Business<br>Technology of Business<br>NYSE Opening Bell<br>Technology<br>Watch Documentaries<br>Artificial Intelligence<br>Intelligence Revolution<br>AI v the Mind<br>Tech Now<br>Health<br>Watch Documentaries<br>Culture<br>Watch Documentaries<br>Film & TV<br>Music<br>Art & Design<br>Style<br>Books<br>Entertainment News<br>Arts<br>Watch Documentaries<br>Arts in Motion<br>Travel<br>Watch Documentaries<br>Destinations<br>Africa<br>Antarctica<br>Asia<br>Australia and Pacific<br>Caribbean & Bermuda<br>Central America<br>Europe<br>Middle East<br>North America<br>South America<br>World’s Table<br>Culture & Experiences<br>Adventures<br>The SpeciaList<br>Earth<br>Watch Documentaries<br>Science<br>Natural Wonders<br>Climate Solutions<br>Sustainable Business<br>Green Living<br>Audio<br>Podcast Categories<br>Radio<br>Audio FAQs<br>Video<br>Watch Documentaries<br>BBC Maestro<br>Discover the World<br>Live<br>Live News<br>Live Sport<br>Documentaries
Site search
Home
News
Sport
Business
Technology
Health
Culture
Arts
Travel
Earth
Audio
Video
Live
Documentaries
Weather<br>Newsletters<br>Watch Live
Nvidia gets $500bn from major investors to develop AI projects
8 hours agoShareSaveAdd as preferred on Google
Kali HaysTechnology reporter
Reuters
Nvidia CEO Jensen Huang has seen his company's value soar amid the AI boom in tech.
Nvidia has teamed up with some of Wall Street's largest banks and investors to raise $500bn (£370bn) in capital for artificial intelligence (AI) infrastructure.
The chipmaker said it had struck deals with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR, and that the investors were for the first time treating AI hardware and infrastructure, often referred to as "compute", as an asset class.
"In AI, compute is revenue," Jensen Huang, chief executive of Nvidia, said. "We are bringing the world's leading long-term capital providers together to independently underwrite AI infrastructure."
The financing will go towards Nvidia's own projects and those being built by its partners.
Infrastructure projects backed by this fund will likely include the construction of new data centres to house, operate, and cool miles of stacked computer chips that process AI data and actions.
It will also back new factories to manufacture the AI chips needed to power these systems and increase their availability to buyers.
"Compute has become a critical infrastructure asset," Joe Bae and Scott Nuttall, co-chief executives of KKR, said in a joint statement. "As we've scaled our approach to digital infrastructure, we've learned that delivery, not ambition, is the hard part."
Essentially every major technology and AI company uses Nvidia's computer chips, or graphics processing units (GPUs), to power their services, AI platforms and AI chatbots.
Companies using Nvidia's popular chips or GPUs include Google, Meta, Amazon, Microsoft, SpaceX, Tesla, OpenAI and Anthropic.
Such companies have collectively spent over $1tn in just three years on AI projects and infrastructure, with much more spending expected. And their demand for Nvidia's chips and services has driven the stock market value of the company up five fold in three years.
In a statement on Monday, Huang referred to Nvidia's role as a chip-maker as the company's beginning.
"Today, we are helping create a new class of productive, investable infrastructure: AI factories," he said.
With a new ability to tap some funding from the banks and investors partnering with Nvidia, they will be able to finance more of the AI boom.
Jim Zelter, president of Apollo, a lender which manages more than $1tn in assets, said: "Modern compute has emerged as a scarce, mission-critical asset class."
It is also "positioned to drive significant long-term economic growth and productivity gains", Zelter added.
BlackRock last month entered into an individual deal with Meta to finance and take a majority ownership stake in one data centre in Texas.
Anthropic also recently entered into a deal with Macquarie Asset Management and GIC, a sovereign wealth fund in Singapore, for its own investment in AI infrastructure.
The company did not specify the size of the deal, but said more financing was needed as its popular chatbot Claude had become so popular that the "demand requires significant new compute".
Artificial intelligence
Related
I was accused of using AI in my dissertation but I wrote it all myself
Tech leaders say AI means less work - their staff say they work up to 90 hours a week
Is football AI-proof? Why tech investors wanted a slice of the World Cup
BBC in other languages<br>The BBC is in multiple languages<br>Read the BBC In your own language<br>BBC News Brasil<br>BBC News Mundo (Spanish)<br>BBC News မြန်မာ (Burmese)<br>BBC News 中文 (Chinese)<br>BBC News Indonesia<br>BBC News 코리아 (Korean)<br>BBC News ไทย (Thai)<br>BBC...