Jensen Huang personally "lobbied" Wall Street: NVIDIA Corporation (NVDA.US) partners with six major giants, aiming to turn GPUs into "properties that lay golden eggs," unlocking a $500 billion computing power mortgage market.

NVIDIA Corporation (NVDA.US) is trying to position its artificial intelligence chips as the latest asset class on Wall Street. The company has partnered with six large asset management firms to promote a financing plan worth up to $500 billion, aiming to treat computing power infrastructure like commercial real estate, toll roads, or other collateralizable assets, providing financial support to clients. NVIDIA Corporation announced on Monday that it has signed memoranda of understanding with Apollo Global Management Inc, Blackstone Inc., BlackRock, Inc., Bruker Corporation, Goldman Sachs Group, Inc., and KKR to jointly build a financing platform for NVIDIA Corporation's clients. Executives from these seven companies rarely appeared together on a live CNBC interview to provide a joint interpretation of this collaboration. The plan aims to leverage over $500 billion in third-party capital for hyperscale cloud service providers, cutting-edge AI laboratories, and various enterprises to construct data centers and procure NVIDIA Corporation hardware. This move could signify a significant shift in the financing model of AI infrastructureby introducing institutional credit, insurance capital, and private equity to guarantee GPUs and data centers, NVIDIA Corporation is enabling its end users to obtain financing without utilizing their own balance sheets. "This is indeed the first time technology chips have become an investable asset class," said NVIDIA Corporation founder and CEO Jensen Huang. "Today, these chips are assets that can generate revenue. They possess productivity, long lifespans, interchangeability, and flexibility." Huang believes that because NVIDIA Corporation hardware has been widely adopted and can circulate among different clients, lenders can confidently regard computing power as an asset with long-term profit potential. In the past, GPUs were typically seen as hardware with rapid depreciation. NVIDIA Corporation's recent actions are overturning this traditional perception by transforming AI computing power into long-term, financeable infrastructure assets. However, skeptics may still worry whether existing AI chips can maintain their value as new generations of chips are continually released. "Fundamentally, the uniqueness of this industry and this method of computation lies in the fact that computers have now become a part of infrastructuresimilar to electricity and the internetso you have to view it from the perspective of infrastructure," Huang stated during the interview. Alternative asset management firms have been keen in recent years to channel funds into digital infrastructure, financing projects through the absorption of institutional and insurance capital. Firms like Apollo and Blackstone have already arranged debt and equity financing for companies such as Anthropic. This financing action comes in the wake of global market turmoil experienced in Julywhen investors began questioning whether the massive investments tech giants are making in AI can yield returns. As hyperscale companies plan to invest tens of billions of dollars in data centers and hardware, rating agencies like Moody's Corporation have warned that unprecedented capital expenditures are beginning to squeeze free cash flow and forcing tech giants to bear heavier debt burdens. "A New Chapter in Financial Engineering" Wall Street titans, including BlackRock, Inc. CEO Larry Fink, Blackstone President Jon Gray, and Goldman Sachs Group, Inc. CEO David Solomon, stated in a press release on Monday that computing power has rapidly evolved into a key asset class driving the next stage of global economic growth. "We are at a historic moment in the AI investment cycle," Solomon said in the statement. "Our role in investing and distribution reflects our confidence in NVIDIA Corporation's leadership and also energizes us about the new opportunity of creating a credit market supported by NVIDIA Corporation's computing power." Solomon revealed that Huang personally pitched this financing concept to Wall Street giants. Gray from Blackstone remarked that AI computing power will be viewed as a "financeable asset class," just as mortgage institutions see real estate. He claimed that the demand for AI far exceeds supply, with Blackstone's portfolio companies' usage of AI soaring sevenfold this year. Fink from BlackRock, Inc. believes this project will mark the beginning of "the next future of financial engineering," comparable to the birth of mortgage-backed securities in the 1970s. He noted that some funds have already been raised, but BlackRock, Inc. will "continue to raise significantly." "We must quickly raise funds and put them to work because I believe it is crucial for the U.S. to become the global leader in AI," Fink emphasized.