BlackRock, Goldman, Apollo, Blackstone, Brookfield and KKR are in talks with Nvidia on an AI buildout that could reach $500 billion

BlackRock (NYSE: BLK), Goldman Sachs (NYSE: GS), Apollo Global Management (NYSE: APO), Blackstone (NYSE: BX), Brookfield Asset Management (NYSE: BAM) and KKR (NYSE: KKR) are lining up with Nvidia (NASDAQ: NVDA) for a giant new round of AI spending that could eventually reach $500 billion.

According to the Financial Times, the collaboration is expected to revolve around funding additional computer capabilities, electricity provision, and constructing data centers. The deal can be unveiled as early as next Monday.

NVDA fell by 1.4% following the news, thereby resulting in a loss of over $70 billion in the company’s valuation.

The discussions come as Nvidia takes a bigger role in paying for the huge physical buildout behind artificial intelligence.

The company is worth about $5.25 trillion and already sells the graphics processors used to train and run most of the biggest US AI systems. It also supplies software and other computing tools. But GPUs alone do not keep an AI model running.

For operators, it requires huge amounts of server-containing buildings, power, cooling, and financing over an extended period of time. Nvidia has been contributing increasingly to helping its clients get this funding, along with putting their funds in the companies buying its hardware.

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