Goldman explores private credit for NVIDIA’s $500 billion AI buildout: Report

Goldman Sachs is sounding out investors for NVIDIA’s planned $500 billion AI financing program after winning a coveted role in the chipmaker’s infrastructure push, Reuters reported Friday.

The financing is expected to draw money from banks, insurers, asset managers and private credit firms, with asset managers likely to take a meaningful portion of the funding. Goldman has already held discussions with a range of potential investors.

Goldman can provide junior capital and private credit through its asset-management business, while its investment bank can arrange debt placements with private credit funds and eventually public debt markets.

NVIDIA announced the initiative this week with six major financial institutions, aiming to mobilize more than $500 billion in third-party capital as demand for AI computing infrastructure surges. NVIDIA CEO Jensen Huang said the company could backstop as much as 25% of potential deals.

Goldman’s central role builds on years of work with NVIDIA. The bank advised the company on several transactions and technology financings and was among the lead underwriters for NVIDIA’s $25 billion bond offering in June.

The $500 billion blueprint

Nvidia announced on August 10 that it would partner with a roster of heavyweight financial institutions, including Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR, to create dedicated AI compute financing platforms.

The goal is to mobilize over $500 billion in capital to fund AI infrastructure at a scale the industry has never attempted.

Goldman Sachs CEO David Solomon described the opportunity as creating “a market for credit backed by NVIDIA compute.”

Goldman could participate through junior capital and private-credit financing via its asset-management arm, while its investment bank could help arrange and distribute the resulting debt to institutional investors and public debt markets.