FINWIRES · TerminalLIVE
FINWIRES

Nvidia Partners With Major Financial Firms to Raise Over $500 Billion for AI Infrastructure

By
Nvidia Partners With Major Financial Firms to Raise Over $500 Billion for AI Infrastructure

Nvidia (NVDA) shares rose early Tuesday after the chipmaker said it partnered with six major financial institutions to raise more than $500 billion in third-party capital for the development of artificial intelligence infrastructure.

The tech bellwether signed memorandums of understanding with Apollo (APO), BlackRock (BLK), Blackstone (BX), Brookfield (BN), Goldman Sachs (GS) and KKR (KKR) to establish independent compute financing platforms, it said late Monday.

Nvidia's stock increased 1.2% in the most recent premarket activity.

Nvidia said it intends to work with the six companies to create dedicated pools of capital at "significant scale" to finance the buildout of AI infrastructure across its frontier AI labs, enterprises and AI clouds. The financing platforms will help turn compute and full-stack AI infrastructure into an investable asset class and support long-duration, usage-linked revenue, the chipmaker added.

The financial terms of the partnerships, which are subject to final agreements, weren't disclosed.

"We are bringing the world's leading long-term capital providers together to independently underwrite AI infrastructure," Nvidia Chief Executive Jensen Huang said in a statement. "These financing platforms will help customers access scarce compute at scale and build the DSX AI factories that will power every industry and country in the age of AI."

Nvidia said demand for AI infrastructure is accelerating as governments and businesses ramp up investment in AI.

"Modern compute has emerged as a scarce, mission-critical asset class with compelling investment characteristics that is positioned to drive significant long-term economic growth and productivity gains," Apollo President Jim Zelter said.

Last month, Nvidia agreed to expand its partnership with South Korean conglomerate SK Group with a more than $500 billion AI infrastructure initiative.

Technology giants are raising capital to support AI buildouts. Intel (INTC) on Monday said it plans to raise $15 billion from a common stock offering to support capital expenditures as demand for artificial intelligence computing remains strong. The chipmaker on Tuesday upsized the offering to $20 billion.

In an emailed client note on Monday, BofA Securities said it expects Nvidia to deliver a fiscal second-quarter revenue beat and issue upbeat guidance amid Vera Rubin shipments and "solid" cloud capital expenditure trends. The company is scheduled to release its latest financial results later this month.

Related Articles

Hanwha Group Proposes Up to $1.2 Billion Acquisition of Austal USA
US Markets

Hanwha Group Proposes Up to $1.2 Billion Acquisition of Austal USA

Australian shipbuilder Austal (ASX:ASB) received a non-binding, conditional proposal from a unit of South Korea's Hanwha Group to acquire its U.S. operations for an indicative enterprise value of up to $1.20 billion.Hanwha Defence USA has offered $1.05 billion to $1.20 billion for the relevant Austal USA entities and operations, according to a Tuesday press release.The proposal remains subject to Hanwha completing due diligence, obtaining regulatory approvals, and agreeing on definitive transaction documents.Under the proposal, Hanwha would acquire 100% of the shares in the relevant Austal USA holding entities, or such other transaction structure as may be agreed.Austal said the offer does not include any publicly traded shares in the company or its core Australasia operations in Australia, the Philippines, and Vietnam.Its sovereign shipbuilding mandate in Australia under its strategic agreement with the Commonwealth would also remain intact and unaffected by the proposal.The Austal board and its advisers have assessed the proposal and determined that it merits further evaluation.Hanwha will have a four-week period, starting once the requested due diligence information is made available, to review Austal USA's business and contracts, engage with key U.S. government counterparties, and advance transaction documentation."Should a more certain proposal be received from Hanwha, that proposal will be assessed by the Austal Board, having regard to the inherent value of Austal USA, and acting in the best interest of all Austal shareholders," Austal said.The proposal is not subject to a financing condition. However, Austal said there is no certainty that Hanwha will submit a further proposal or that any proposal will ultimately result in a definitive agreement.

ASX:ASB
CESC Unit to Buy 1.4 GW Solar Assets From ReNew For INR48.6 Billion
US Markets

CESC Unit to Buy 1.4 GW Solar Assets From ReNew For INR48.6 Billion

Indian electric power distributor CESC (NSE:CESC, BOM:500084), through its renewable energy unit Purvah Green Power, has signed a share purchase agreement to acquire 100% of six ReNew Solar Power subsidiaries holding 1.41 gigawatts of installed capacity at an enterprise value of 48.6 billion Indian rupees.The enterprise value excludes a contingent payment of an estimated 2.3 billion rupees, payable only if there is additional realization from a change-in-law claim, according to a filing with the National Stock Exchange of India on Monday.Cash consideration payable at closing is 15.8 billion rupees, comprising 5.89 billion rupees for share capital and a 9.93 billion-rupee infusion of unsecured promoter debt used to repay existing promoter debt at the target companies.The six target companies - ReNew Hans Urja, ReNew Solar Photovoltaic, ReNew Wind Energy (Karnataka 3), ReNew Wind Energy (MP Four), ReNew Wind Energy (Karnataka 4) and ReNew Agni Power - are held across project special purpose vehicles in Rajasthan and Karnataka.More than 90% of the acquired capacity is contracted with state-run Solar Energy Corp. of India under 25-year power purchase agreements, with the balance tied to Karnataka distribution companies, CESC said.No governmental or regulatory approval is required for the transaction, which is funded by the parent company and expected to close before Oct. 31.Upon completion, the six companies will become step-down subsidiaries of CESC.The deal lifts Purvah's total contracted renewable capacity to 4.8 gigawatt-peak from about 3.4 GWp, as the company aims to reach 10 GW of renewable energy.Purvah was established in December 2023 and develops and operates utility-scale solar, wind and hybrid renewable energy assets across India.

BOM:500084NSE:CESC
Update: S&P 500 Retreats From Record, Oil Jumps as Hormuz Reopening Hopes Fade
US Markets

Update: S&P 500 Retreats From Record, Oil Jumps as Hormuz Reopening Hopes Fade

(Updates with market moves at the end of the day, and other changes, if any.)US equity benchmarks fell Monday, with the S&P 500 pulling back from a record high as oil prices rose amid doubts that the Strait of Hormuz will reopen soon.The large-cap index closed 0.1% lower at 7,753.11, after reaching a new peak in the previous session. The Nasdaq Composite declined 0.3% to settle at 26,605.36, while the Dow Jones Industrial Average edged down 0.1% to 53,975.98.Among sectors, real estate led the laggards, while energy topped the gainers.West Texas Intermediate crude oil jumped 5% to $82.05 a barrel in Monday late-afternoon trade, while Brent climbed 4.8% to $87.55.Iran has reportedly laid out new terms for reopening the Strait of Hormuz, including a permanent end to the war against Tehran and its allies, as well as demanding full compensation for war damages.US President Donald Trump on Monday demanded compensation from Iran "for all of the people that they have killed and gravely wounded with their roadside bombs and many conflicts."In another social media post, Trump said that "Iran should be responsible for the damages and death caused to the people of Lebanon, Syria, Yemen, and Gaza."Trump has signaled that he's prepared to exert greater economic pressure on Iran instead of launching another military attack, Axios reported Sunday."Oil prices remain supported by uncertainty surrounding the Strait of Hormuz," ING Bank said in a report Monday. "Significant hurdles remain before any broader agreement is reached."US Treasury yields were higher, with the two-year rate up 3.5 basis points at 4.24% and the 10-year rate rising 4.3 basis points to 4.7%.Cleveland Fed President Beth Hammack told Yahoo Finance that more than one interest rate hike may be needed to curb US inflation.Hammack was one of the three dissenters who called for a quarter percentage point rate hike last month, when the Federal Reserve left monetary policy unchanged for a fifth time.In company news, Intel (INTC) plans to raise $15 billion to support capital expenditures as demand for artificial intelligence computing remains strong. The stock fell 4.1%.Teledyne Technologies (TDY) has agreed to acquire X-ray imaging components manufacturer Varex Imaging (VREX) in a $1.1 billion deal that will expand its X-ray device portfolio to include oncology detectors. Varex shares surged 49%, while Teledyne edged down 0.2%.Some 11 S&P 500 companies are scheduled to report results this week, including Cisco (CSCO) and Applied Materials (AMAT).So far, 443 companies, or 89% of the index constituents, have reported results in the current cycle, with profit growth slowing to 51% from about 57% a week ago, Oppenheimer Asset Management said in a report Monday.Spot gold rose 1.1% to $4,388.79 per troy ounce, while silver advanced 4.2% to $66.19 per ounce.

Dow JonesNasdaq CompositeS&P 500$AMAT$CSCO$INTC$TDY$VREX