Nvidia is partnering with six major Wall Street asset managers on a $500 billion financing push meant to turn AI chips into a new class of asset that can be borrowed against, similar to commercial real estate or toll roads.
CNBC reports that the chipmaker signed memorandums of understanding with Apollo Global Management, Blackstone, BlackRock, Brookfield Asset Management, Goldman Sachs and KKR to set up financing platforms for Nvidia’s customers, the company said Monday in a statement.
The effort aims to mobilize more than $500 billion in third-party capital for hyperscalers, frontier AI labs and enterprises to build data centers and buy Nvidia hardware. By drawing on institutional credit, insurance funds and private capital to underwrite GPUs and data centers, Nvidia is helping its customers secure financing without relying on their own balance sheets.
“This is really the first time that technology chips have become an investable asset class,” Nvidia founder and CEO Jensen Huang told CNBC. “These are revenue-generating assets now. They’re productive, they’re long-lived, they’re fungible, they’re flexible.”
Huang said that because Nvidia’s hardware is widely adopted and can be transferred across customers, lenders can reliably underwrite compute as a revenue-generating asset with an extended lifespan. GPUs have traditionally been viewed as hardware that depreciates quickly, and Nvidia’s push seeks to reposition AI compute capacity as long-term, bankable infrastructure.
“Fundamentally, what’s different about this industry and this way of doing computing is that the computer is now part of the infrastructure, like electricity, like the internet, and so you have to think about it like it’s infrastructure,” Huang said.
Alternative asset managers have been looking to put capital into digital infrastructure, drawing on institutional and insurance funds to finance projects. Apollo and Blackstone, among others, have already arranged debt and equity financing for companies including Anthropic.
The announcement follows a July decline in global markets during which investors questioned whether Big Tech’s AI spending would pay off. Hyperscalers are on track to spend hundreds of billions of dollars on data centers and hardware, and rating agencies including Moody’s have warned that the scale of that spending is starting to squeeze free cash flow and push tech companies toward heavier debt loads.
Leaders from the Wall Street firms involved, including BlackRock CEO Larry Fink, Blackstone President Jon Gray and Goldman Sachs CEO David Solomon, said in Monday’s release that compute has quickly become a key asset class driving the next stage of global economic growth.
“We’re in a pivotal moment of a historic AI investment cycle,” Solomon said in the release. “Our investment and distribution roles reflect our confidence in NVIDIA’s leadership, and we’re excited for the new opportunity to create a market for credit backed by NVIDIA compute.”
Solomon told Quick that Huang approached the Wall Street firms with the idea for the financing project.
Gray said AI compute will come to be seen as a “financeable asset class” in the way mortgage lenders view homes. He said demand for AI is outpacing supply, noting that usage among Blackstone portfolio companies has increased sevenfold this year.
Fink said he believes the project marks the start of the “next future for financial engineering,” comparing it to the creation of mortgage-backed securities in the 1970s. He said some funds have already been raised and that BlackRock will be “raising quite a bit more.”
“We need to raise this money as fast as possible and put this to work, because I think it’s really imperative that the United States is the leader in AI in the world,” Fink said.
Breitbart News previously reported that Michael Burry of The Big Short fame, who has publicly claimed we are in an AI bubble, believes that tech giants are inflating the value of their AI processing power:
In a recent post on X, Michael Burry, the investor made famous by The Big Short, alleged that “hyperscalers” — the major cloud and AI infrastructure providers — are understating their depreciation expenses by estimating that chips will have a longer lifespan than is realistic. Burry argues that this practice artificially inflates the companies’ reported earnings.
“Understating depreciation by extending useful life of assets artificially boosts earnings – one of the more common frauds of the modern era,” Burry wrote in his post. He adds that “Massively ramping capex through purchase of Nvidia chips/servers on a 2-3 yr product cycle should not result in the extension of useful lives of compute equipment. Yet this is exactly what all the hyperscalers have done. By my estimates they will understate depreciation by $176 billion 2026-2028.”
Burry estimates that from 2026 through 2028, this accounting maneuver would understate depreciation by approximately $176 billion, inflating reported earnings across the industry. He specifically called out Oracle and Mark Zuckerberg’s Meta, stating that their profits could be overstated by roughly 27 percent and 21 percent, respectively, by 2028.
Wall Street is placing massive bets on the future of AI. Breitbart News social media director Wynton Hall has written his instant bestseller Code Red: The Left, the Right, China, and the Race to Control AI to serve as the definitive guide on how the MAGA movement can create positions on AI that benefit humanity without handing control of our nation to the leftists of Silicon Valley or allowing the Chinese to take over the world.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of AI, free speech, and online censorship.