Earlier this week, NVIDIA announced memorandums of understanding (MOUs) with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR to raise $500 billion of third-party capital to finance AI infrastructure buildout. Jensen Huang said of the deal that its goal was “bringing the world's leading long-term capital providers together to independently underwrite AI infrastructure”, with investors treating AI hardware and infrastructure as an asset class for the first time.
Jensen Huang clarified that the facility was not a substitute for insurance underwriting of new developments, saying that “in some cases, NVIDIA may provide a residual-value support mechanism for up to 25% of an opportunity, assessed carefully on a project-by-project basis.” Notably, the deals are still in MOUs and remain subject to execution of final agreements, which NVIDIA has walked away from in the past. For example, the $100 billion OpenAI MOU never closed; Huang later said it was “never a commitment” and the deal ultimately settled into a $30 billion equity stake.
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