NVIDIA is reportedly working with a group of major Wall Street firms to put together a $500 billion funding package for AI infrastructure, according to Reuters. The group includes some of the biggest Wall Street names such as Apollo Global, Blackstone, BlackRock's Global Infrastructure Partners, Brookfield Asset Management, Goldman Sachs, and KKR. The Financial Times reported the development first, and soon after that, NVIDIA shares fell over 3%. In June, the company tapped the debt market with a $25 billion bond issuance, its first since 2021. This latest move suggests the capital requirements for AI infrastructure are growing faster than any single player can fund alone. For this year alone, big tech combined AI spending is on track to surpass $730 billion. Across the board, the biggest names in semiconductors and AI infrastructure are posting record revenues while simultaneously raising fresh capital for future projects, another confirming sign that demand expectations for the next few years are running well ahead of current capacity.
Two other notable developments landed today alongside the NVIDIA news. Intel announced a $15 billion underwritten public offering of common stock to fund its foundry expansion, a significant capital raise for a company in the middle of an expensive manufacturing transformation. And TSMC reported July revenue of NT$467.58 billion (around $14.49 billion), up 5.6% from June and 44.7% year over year. The scale of that growth is worth noting, TSMC was already selling essentially all available wafer capacity, so the revenue increase reflects rising customer commitments and pricing rather than idle or new capacity coming online. Going back to NVIDIA, this July we reported that the company was in talks to provide roughly $250 billion in financing guarantees for OpenAI's planned data center campus in southern Ohio. Moreover, NVIDIA is reportedly also in talks to help fund OpenAI's with $350 billion for chip purchases.