Goldman Sachs has been approaching banks, insurers, asset managers and private credit firms about joining Nvidia's $500 billion AI infrastructure financing initiative, according to Reuters, citing sources familiar with the matter.
The Wall Street bank secured a central role as sole lender alongside alternative asset managers Blackstone and Apollo in the program Nvidia announced earlier this week. Through its asset management arm, Goldman can offer junior capital and private credit financing, and funnel debt into private credit funds and public debt markets.
Chairman and CEO David Solomon told CNBC that Nvidia founder Jensen Huang brought the idea to the bank: 'Jensen came, approached us with the idea, and we said we'd love to talk to you about it.'
Nvidia's partnerships with six institutions — Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR — aim to mobilize more than $500 billion in third-party capital for AI infrastructure. Under the arrangement, Nvidia has the option to backstop up to $125 billion, or 25% of the potential deals.
The goal, per Reuters, is to establish a functioning asset-backed market around AI compute capacity, where debt instruments could be bought and sold like conventional securities — potentially lowering borrowing costs and widening the investor base. Bank of America analyst Vivek Arya called the arrangement 'a pivot away from vendor financing,' adding that 'the burden sits with the consortium, not Nvidia's balance sheet.'
At roughly $5.2 trillion in market capitalization, Nvidia is the most valuable company trading on US public markets. The initiative reflects Wall Street's growing appetite for turning AI's massive compute buildout into a tradeable asset class.
