Wall Street Giants Partner With Nvidia On $500 Billion AI Financing Deal (yahoo.com)
- Reference: 0184921180
- News link: https://news.slashdot.org/story/26/08/10/1859242/wall-street-giants-partner-with-nvidia-on-500-billion-ai-financing-deal
- Source link: https://finance.yahoo.com/technology/ai/articles/wall-street-giants-partner-nvidia-163441421.html
> The partnership underscores Nvidia's growing efforts to raise capital for itself and its clients to continue assembling the chips, power production and data centres at the heart of the AI boom. The $5.25 trillion company has positioned itself at the centre of the AI boom, providing chips, infrastructure and software to a wide array of partners developing the technology. Nvidia's graphics processing units, or GPUs, underpin most of the leading US AI models available today.
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> [...] The biggest cloud-computing companies, including Meta, Oracle, Microsoft, Alphabet and Amazon, have dramatically increased their spending on AI infrastructure as they look to win the race to dominate the emerging technology. Morgan Stanley projects so-called hyperscalers will spend $3.5 trillion between 2026 and 2028. That need for capital has forced technology groups to tap every source of cash they can find, including public equity, investment-grade and high-yield bonds, securitized debt, private credit and project finance markets.
"[The] sheer size of the AI infrastructure build-out is unprecedented," Jim Zelter, president of Apollo, said on an earnings call earlier this month. "More than $8 trillion of capital is expected to be invested, a staggering sum. We see an enormous opportunity for private capital to finance a portion of this along with public capital."
[1] https://www.ft.com/content/98a8fd17-15b6-4f67-9cb4-825722b11348?syn-25a6b1a6=1
[2] https://finance.yahoo.com/technology/ai/articles/wall-street-giants-partner-nvidia-163441421.html
Translated from WallSpeak (Score:5, Insightful)
> "More than $8 trillion of capital is expected to be invested, a staggering sum. We see an enormous opportunity for private capital to finance a portion of this along with public capital."
Translated: “We’ll get all the upside and foist the downside on public investors. “
Translated from History. (Score:2)
>> "More than $8 trillion of capital is expected to be invested, a staggering sum. We see an enormous opportunity for private capital to finance a portion of this along with public capital."
> Translated: “We’ll get all the upside and foist the downside on public investors. “
What exactly is the "public capital" they speak of here? Are they offering pre-build IPOs or some equally delusional investment "opportunity" while pretending vaporware could never dot-bomb again? History is a bit curious if we're still that dumb, or if we've become even dumber.
(Don't try and answer that by yourself, Gen-GPT. Many of us already know you can't.)
We keep adding 'towns' (Score:3)
below the financial dam that is not sound and could break any time. This won't bode well for all of us if it breaks.
Yes drag the financial system into the AI madness (Score:4, Insightful)
Pull all industries into this AI madness to create one large, highly interconnected, "too big to fail" mega entity. When it burns itself, fed (tax payers) will have no choice but to bail this entire "AI slop ball" out.
Re: Yes drag the financial system into the AI madn (Score:1)
The money men are the only ones who want this shit.
Re: (Score:1)
When, or perhaps if, AI "falters" do you think Republicans will have an ounce of self reflection after all the screaming they've just "performed" about Socialism and Communism? Trump has already taken public ownership of companies and would surely use it as an excuse to take more when he bails them out. I'm sure he'll frame it as the only rational thing to do and a good deal. We should all hope and pray it crumbles in 2028 before the election so it'll feel like 2008 again.
Re: (Score:2)
> Pull all industries into this AI madness to create one large, highly interconnected, "too big to fail" mega entity. When it burns itself, fed (tax payers) will have no choice but to bail this entire "AI slop ball" out.
If AI fails to deliver Actual Intelligence, then putting humans back to work IS the fucking bail out.
Whiners leading failing industries aren't getting tax blood from the unemployable stone like they did before. Ironically enough, AI fired those sources of tax revenue.
All I see here is scamming of the public. (Score:2)
We see an enormous opportunity for private capital to finance a portion
No, it is a giant rug pull, does anyone with a brain expect to make a long term profit buying such stock?
.. securitized debt ..
this almost tripped me up as I confused it with secured debt - no this is just a bunch of smaller debts bundled up and offered to some? sucker?
We are no longer in a bubble, this how you build a financial apocalypse.
This is a funnel. (Score:2)
Into a bottomless pit. When the funnel collapses it's all just gone.
If AI is making so much money- (Score:2)
-why does it need so much money?
Re: (Score:3)
Because those investors are all super humble altruists who do not want anyone to miss out on the glorious mountains of money they will make in profit from those investments. Quick, give them all you have to multiply your money!
just no (Score:2)
Allowing all capitol to be sucked-up by one investment trope begs for disaster. The investment landscape is distorted ... like a swale distorted by a flash-flood ... into planning for a singular future no matter how the path trends. Remember how the Eisenhower road build-out --- promising vast transportation benefits --- encouraged mafia-like contractors, cut communities in half and isolated stone cities from living suburbs. WE ( citizens ) do not NEED LLM.AI on colossal scale. Most
Debt Incoming! (Score:5, Informative)
Nvidia taking on $500B of crippling debt to keep the plates spinning. Judging from the drop in NVDA share price, the street doesn't like it.
Re: (Score:2)
Not much of a drop though, and still up from last Monday.
I find it troubling though. Even with a $5T market cap, that's a lot to borrow. And how much of their cap is financing sales to datacenters?
Re: (Score:2)
the circle jerk is the bestest winningiest one yet.
Re: (Score:2)
I'm reminded of an old saying: "The market can afford to remain irrational longer than you can afford to remain solvent."