Nvidia and Wall Street will invest 500 billion in artificial intelligence

BarcelonaNvidia, the maker of graphics memory chips that has dominated artificial intelligence in recent years, continues to push the market to grow at a forced pace. As announced in a statement, the most valuable company on the planet has reached an agreement with six of Wall Street's largest financial entities to mobilize $500 billion in investment dedicated to AI infrastructure. In a social media post, its CEO, Jensen Huang, assured that the alliance's objective is to "establish independent financing platforms" to activate the necessary capital to build and launch large-scale AI factories.

According to the executive, Nvidia has agreed to this capital objective with six of the world's most far-reaching financial companies: the American funds Apollo and KKR – one of the most criticized in the financial sector for their role in the Israeli occupation of Palestinian territories –; the Canadian Brookfield; the asset managers Blackstone and BlackRock, and the bank Goldman Sachs. With the capital they seek to activate, Huang aims to underpin the transition "from research to production" in the artificial intelligence sector. "AI is creating real value, and the infrastructure behind it has become one of the most productive assets in the world," he added in his social media post.

For Huang, the main objective of this massive pool of capital dedicated to AI is to offer technology operators access to their own computing capacity outside the channels of large corporations. "These financing platforms will help clients use scarce computing power on a large scale and build AI factories that will accelerate all industries and countries in this era," stated the business leader.

Unstoppable Capital

The half a billion dollars that Nvidia seeks to launch with the help of banking and big capital is only part of the ocean of funding that continues to drain the AI industry. The five big tech hyperscalers – Amazon, Microsoft, Meta (Facebook), Alphabet (Google), and Oracle – plan to dedicate between $730 and $740 billion to their artificial intelligence initiatives in 2026 alone, and the market already anticipates that next year will be even more intensive. SpaceX's results, presented last week, followed the same path: Elon Musk's tech company dedicated nearly $16 billion to this business segment in the second quarter of the year alone, and already warned that the trend would become even sharper during the next period.

Despite the warning to navigators that Musk's accounts represented, which "triggered reticence among investors with a sharp drop in SpaceX's stock on the stock market, the major North American tech companies continue to be confident that massive AI investments will yield significant returns in the short term.

In Huang's opinion, these returns will come in the form of a "virtuous cycle of the AI industrial revolution." "More computing creates better artificial intelligence: which creates more users, who generate more revenue, which is used to invest in more computing," the executive remarked in the social media statement. In conclusion, for Nvidia's CEO, "the AI era is here." The market, for now, shares his opinion: in the last six months, the company has appreciated by about 15%, and its market capitalization remains stable at around $5.3 trillion.