Wall Street Giants Partner With Nvidia On $500 Billion AI Financing Deal (yahoo.com) 44
Nvidia is working with Wall Street heavyweights on a potential $500 billion financing package for AI infrastructure (source paywalled; alternative source). The consortium includes BlackRock's Global Infrastructure Partners, Brookfield Asset Management, Goldman Sachs and KKR. The Financial Times reports: The partnership underscores Nvidia's growing efforts to raise capital for itself and its clients to continue assembling the chips, power production and data centres at the heart of the AI boom. The $5.25 trillion company has positioned itself at the centre of the AI boom, providing chips, infrastructure and software to a wide array of partners developing the technology. Nvidia's graphics processing units, or GPUs, underpin most of the leading US AI models available today.
[...] The biggest cloud-computing companies, including Meta, Oracle, Microsoft, Alphabet and Amazon, have dramatically increased their spending on AI infrastructure as they look to win the race to dominate the emerging technology. Morgan Stanley projects so-called hyperscalers will spend $3.5 trillion between 2026 and 2028. That need for capital has forced technology groups to tap every source of cash they can find, including public equity, investment-grade and high-yield bonds, securitized debt, private credit and project finance markets. "[The] sheer size of the AI infrastructure build-out is unprecedented," Jim Zelter, president of Apollo, said on an earnings call earlier this month. "More than $8 trillion of capital is expected to be invested, a staggering sum. We see an enormous opportunity for private capital to finance a portion of this along with public capital."
[...] The biggest cloud-computing companies, including Meta, Oracle, Microsoft, Alphabet and Amazon, have dramatically increased their spending on AI infrastructure as they look to win the race to dominate the emerging technology. Morgan Stanley projects so-called hyperscalers will spend $3.5 trillion between 2026 and 2028. That need for capital has forced technology groups to tap every source of cash they can find, including public equity, investment-grade and high-yield bonds, securitized debt, private credit and project finance markets. "[The] sheer size of the AI infrastructure build-out is unprecedented," Jim Zelter, president of Apollo, said on an earnings call earlier this month. "More than $8 trillion of capital is expected to be invested, a staggering sum. We see an enormous opportunity for private capital to finance a portion of this along with public capital."
Debt Incoming! (Score:5, Informative)
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I find it troubling though. Even with a $5T market cap, that's a lot to borrow. And how much of their cap is financing sales to datacenters?
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the circle jerk is the bestest winningiest one yet.
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I'm reminded of an old saying: "The market can afford to remain irrational longer than you can afford to remain solvent."
I think we're going to get a new spin on this old line. The market *will* remain irrational, while *we* (the public, collectively and individually) go insolvent. But the finance sector and the billionaires will be kept whole, which is what they and their government (because it sure doesn't belong to us) want.
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"Judging from the drop in NVDA share price, the street doesn't like it."
Imagine trying to judge a long term trend from an intraday movement.
Translated from WallSpeak (Score:5, Insightful)
"More than $8 trillion of capital is expected to be invested, a staggering sum. We see an enormous opportunity for private capital to finance a portion of this along with public capital."
Translated: “We’ll get all the upside and foist the downside on public investors. “
Translated from History. (Score:2)
"More than $8 trillion of capital is expected to be invested, a staggering sum. We see an enormous opportunity for private capital to finance a portion of this along with public capital."
Translated: “We’ll get all the upside and foist the downside on public investors. “
What exactly is the "public capital" they speak of here? Are they offering pre-build IPOs or some equally delusional investment "opportunity" while pretending vaporware could never dot-bomb again? History is a bit curious if we're still that dumb, or if we've become even dumber.
(Don't try and answer that by yourself, Gen-GPT. Many of us already know you can't.)
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What exactly is the "public capital" they speak of here?
A public company is going to issue more stock to raise capital.
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"More than $8 trillion of capital is expected to be invested, a staggering sum. We see an enormous opportunity for private capital to finance a portion of this along with public capital."
Translated: “We’ll get all the upside and foist the downside on public investors. “
What exactly is the "public capital" they speak of here? Are they offering pre-build IPOs or some equally delusional investment "opportunity" while pretending vaporware could never dot-bomb again? History is a bit curious if we're still that dumb, or if we've become even dumber.
"No one in this world, so far as I know... has ever lost money by underestimating the intelligence of the great masses of the plain people." H L Mencken
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We keep adding 'towns' (Score:4, Insightful)
below the financial dam that is not sound and could break any time. This won't bode well for all of us if it breaks.
Yes drag the financial system into the AI madness (Score:5, Insightful)
Pull all industries into this AI madness to create one large, highly interconnected, "too big to fail" mega entity. When it burns itself, fed (tax payers) will have no choice but to bail this entire "AI slop ball" out.
Re: Yes drag the financial system into the AI madn (Score:2, Troll)
The money men are the only ones who want this shit.
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This is marked to 0, but it's true.
What were once price/earnings ratios, and other useful metrics have been:
- Pumped to insane P/E
- Sold to data centers no one's built and many vehemently dislike with
- Unstable public funding support in some data center site acquisitions + poured in capital for
- AI that routinely breaks all barriers to hack into other systems while
- Racing against other models to do still worse based on
- BS and uncurated input data
- For absolutely unproven general use modeling by an unsuspe
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Re: Yes drag the financial system into the AI madn (Score:2)
Trump is the most socialist president we've had since FDR. Nothing is going to get through the impenetrable wall of willful ignorance.
Re: Yes drag the financial system into the AI madn (Score:4, Insightful)
Trump is the most sociopathic president we've had. Nothing is going to get through the impenetrable wall of willful ignorance.
FTFY
The orange guy is not a socialist. He is at best a crony capitalist, and at worst a fascist.
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Pull all industries into this AI madness to create one large, highly interconnected, "too big to fail" mega entity. When it burns itself, fed (tax payers) will have no choice but to bail this entire "AI slop ball" out.
If AI fails to deliver Actual Intelligence, then putting humans back to work IS the fucking bail out.
Whiners leading failing industries aren't getting tax blood from the unemployable stone like they did before. Ironically enough, AI fired those sources of tax revenue.
All I see here is scamming of the public. (Score:4, Interesting)
No, it is a giant rug pull, does anyone with a brain expect to make a long term profit buying such stock?
this almost tripped me up as I confused it with secured debt - no this is just a bunch of smaller debts bundled up and offered to some? sucker?
We are no longer in a bubble, this how you build a financial apocalypse.
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We are no longer in a bubble, this how you build a financial apocalypse.
Build? You say that like we don't have experience doing this. In this Century.
2008 is yelling and screaming in our ears about a modern society who didn't lear a single fucking thing about Greed "securitizing" NINJA loans into some kind of valued commodity. Bubbles tend to happen when Greed is excited about lathering up to rinse and repeat.
This is a funnel. (Score:3)
If AI is making so much money- (Score:2)
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Re: If AI is making so much money- (Score:2)
NVIDIA is not an AI company. It is a hardware company. They need the money to expand production.
Money is made at the moment by companies that offer access to LLMs like Google's Gemini.
And to a lesser extend money is made by companies that use those LLMs for their own business.
And similar, money is made by companies that do their own machine learning - but need to rent GPU time in a data enter.
Not everyone has the know how and wish to run a GPU farm in his basement - or the power connection and Internet conn
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They raise a good point Gemini, OpenAI haven't posted a profit yet - right?
Where are the stories about companies building their own LLMs celebrating the revolution?
Here's 55 [evidentlyai.com] stories from first page of google. They all seem pretty ... meh, opportunistic
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Where are the stories about companies building their own LLMs celebrating the revolution?
No idea.
Why would companies "celebrate" their inhouse AI / machine learning successes?
That would give - at least partly - away their business advantage. Consider an airline optimizing flight routes via machine learning and training their own AIs. Why would they "post stories" about that in the news?
Or a power company putting all their key data points of their current contracts into a vector data base.
Why would they tell
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That's evasive again. You could come clean how you are invested in this. I know its at least your employment so far.
Where we are now with this is Levi's selling jeans to the gold diggers, but we're not hearing many "Hallelujahs" and "there's gold in them hills" and this tech's been around a while now.
LLM's bringing something new to coding, I'll give you that. I use it every day, it will keep me in employment longer with my old brain. And cybersecurity, yup, it will find our holes.
That's pretty specific. Nic
just no (Score:2)
You are going to pay for this (Score:1)
You will very likely not have the stomach and the fortitude to simply seize control of the banking system like some of the Nordic countries did during the 2008 meltdown. That would be too socialismy for most people. The only reason why we got anything back from the 2008 collapse is Obam
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"ACKSHUALLY I can't get a date because the leftists are jocks and they turned all the hot girls against us nerds"
you don't even represent the worst of our culture. you're not part of it. go yell at more clouds about how they should be a different color or whatever.
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This will be moved off of Google's balance sheets onto a variety of sub companies and when they collapse you will either bail out those companies or they will crash the entire economy because they will be too big to fail. You will very likely not have the stomach and the fortitude to simply seize control of the banking system like some of the Nordic countries did during the 2008 meltdown. That would be too socialismy for most people. The only reason why we got anything back from the 2008 collapse is Obama threatened to enforce the letter of the bailout terms and exert control over the company's involved and as soon as he did all the sudden they were flush with cash and easily paid back their obligations, without interest of course, but you won't see that happen this time we've let our government become far too corrupt for that. Given that the current president is directly responsible for about 1/3 of the national debt and it's going to be all the next president can do to deal with the aftermath of all the nonsense and wars and tariffs and economic devastation from the current president when the crash finally does come you're going to be paying for it so you better start putting some money away for it right now. You could get your neighbors to stop voting Republican but good luck with that. I have had zero luck. Even if they start to agree with me sooner or later they go home and they turn on Fox news or something and then they're gone again. I can't compete with hundreds of billions of dollars of corporate propaganda
Honestly, what I'm watching as a GenXer that'll be retiring in about 13-15 years, is the collapse of most of my business supplied, government mandated retirement funds. 401ks will be absolutely smashed to oblivion by the stupidity we're watching happen right now. Social Security will eventually be saddled with some of the stupidity, as some government lackey will suggest the AI "rise" is the solution to the insolvency problem we see coming, most likely right before the AI bubble, now more resembling a world
I cannot wait till this all collapeses. (Score:2)
Gonna be a riot.