BlackRock

Nvidia shifts AI advantage from chips to capital

Nvidia is using its large cash reserves and credit capacity to extend its AI advantage beyond chip technology by financing AI infrastructure and partners. The company said it will provide up to $105 billion to support a large OpenAI data-center project in Ohio, including a $1.5 billion equity investment in SB Energy and commitments for power and lease support. Nvidia previously invested $30 billion in OpenAI and has arranged a broader pact with Wall Street firms to enable up to $500 billion in GPU financing. The strategy leverages strong free cash flow (reported at $48.5 billion in the latest quarter), dividend increases, and an $80 billion buyback to accelerate AI buildout and create financial moats around its systems.

Nvidia Rally: Three Reasons It Can Continue

Nvidia's shares have rebounded ahead of its fiscal 2027 Q2 results, driven by reduced perceived risk around its financial support for AI infrastructure, a new large financing initiative, and strong revenue momentum at major AI labs. Nvidia announced support for an Ohio data-center project where OpenAI will be a 20-year tenant and will be the exclusive compute provider; the company's backstop for the initial 4.25-gigawatt build is reported at $105 billion and includes a $1.5 billion investment in SB Energy. Nvidia also unveiled a roughly $500 billion financing initiative with Wall Street firms (Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR) to securitize compute, shifting funding risk to institutional investors. Bloomberg and other outlets reported rapidly growing annualized revenue at OpenAI (~$40 billion) and Anthropic (>$11.5 billion annualized), which eases counterparty concerns around future compute spend.

Nvidia’s $500B Financing: Bubble or Neocloud Bet?

Nvidia announced partnerships with private capital firms (Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, KKR) to create AI compute infrastructure financing platforms intended to mobilize over $500 billion of third‑party capital. The newsletter argues this move is not necessarily a dot‑com style bubble because the loans sit on partners’ balance sheets, the financing enables a new class of contract‑style 'neocloud' datacenter operators, and AI adoption remains in its early stages. The piece also notes hyperscalers and leading AI startups (Anthropic, OpenAI) are diversifying into custom silicon, highlights long-lived NVIDIA A100 contracts reported by CoreWeave, and summarizes other industry moves: Lovable raised $400M at a $13.3B valuation and Cursor was sold to SpaceX for $60B.