Goldman Sachs is sounding out insurers, asset managers, banks and private credit firms about participating in Nvidia’s planned $500bn AI infrastructure financing programme, after securing a central role in the initiative, according to a report by Reuters.
The report cites unnamed people familiar with the discussions as highlighting that the Wall Street bank is expected to help structure and distribute financing to institutional investors as Nvidia and its partners seek to mobilise more than $500bn of third-party capital for the buildout of computing infrastructure.
US insurers, money managers and banks are expected to make up a significant portion of the investor base, with asset managers likely to retain a sizeable share of the financing, according to the sources.
Nvidia announced on 10 August that it had joined forces with six major financial institutions, including Goldman Sachs, to develop financing platforms for AI computing infrastructure. The initiative comes as demand for data centres and high-performance computing capacity accelerates amid the rapid expansion of artificial intelligence.
Goldman’s asset management business can provide junior capital and private credit financing, while its investment banking operation can arrange debt placements with private credit funds and potentially distribute the financing into public debt markets, according to one source.
The bank has already been discussing potential structures with a broad range of institutional investors, including insurers and alternative asset managers.
