Nvidia backs $500B fund to finance AI data center buildouts

Nvidia is partnering with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR to mobilize over $500 billion in financing for AI infrastructure. To attract investors, Nvidia is guaranteeing up to 25% of the residual value of its own chips used as collateral. The Bank of England has already warned of systemic risk if the AI sector underperforms.

Why it matters: Nvidia guaranteeing the resale value of its own hardware ties its balance sheet directly to the success of the buildout it's financing, a circularity that regulators and investors are increasingly nervous about, as reflected in the Bank of England's warning. It shows Nvidia acting less like a chip vendor and more like an infrastructure financier, deepening how much of the AI boom rests on debt rather than revenue.