The initial three-plus years of developing artificial intelligence have been largely funded through unprecedented levels of equity and debt issued by leading tech giants, some of whom are spending so heavily from their existing capital that they have become cash-flow negative.
Recently, Nvidia CEO Jensen Huang outlined what he envisions as the next phase of financing, this time relying not on corporate balance sheets but on the support of top Wall Street firms.
During a CNBC interview, Huang described his plan as a “big concept,” and was joined by representatives from major financial institutions including Goldman Sachs, BlackRock, Blackstone, KKR, Apollo, and Brookfield.
These firms have committed to raising at least $500 billion possibly more to finance the construction and expansion of new AI factories, as chipmakers and hyperscalers compete to satisfy what appears to be an insatiable demand.
Source (CNBC)
