Goldman Sachs (NYSE:GS) is reportedly in talks with potential investors to participate in Nvidia Corp.’s (NASDAQ:NVDA) AI infrastructure financing initiative, as the chipmaker works with Wall Street’s biggest asset managers to mobilize more than $500 billion in third-party capital.

Goldman can supply junior capital and private credit, and help place debt into private and public markets, Reuters reported, citing sources. Asset managers plan to retain a sizable share of the financing.

Goldman Sachs did not immediately respond to Benzinga‘s request for comment.

Nvidia CEO Jensen Huang unveiled the plan on Monday alongside Apollo Global Management Inc. (NYSE:APO), BlackRock Inc. (NYSE:BLK), Blackstone Inc. (NYSE:BX), Brookfield Asset Management (NYSE:BAM), Goldman Sachs and KKR & Co. Inc. (NYSE:KKR).

A Relationship Years in the Making

The relationship between Nvidia and Goldman runs deep. The bank has advised Nvidia on its $6.9 billion acquisition of Mellanox Technologies, a global maker of high-speed computer networking products, and was among the joint book-running managers on June’s $25 billion bond sale.

This relationship extends to the top of both firms. Less than two years ago, Goldman CEO David Solomon interviewed Nvidia CEO Jensen Huang at a technology conference hosted by the bank.

In a CNBC interview on Monday, Solomon said Huang approached Goldman with the idea for the financing structure, and the bank welcomed the opportunity to discuss it.

Skepticism

Hedge fund manager Michael Burry earlier this week called the initiative a “Wall Street stunt,” warning the private-credit structure recalls past cycles, “Meet the new Boss. Same as the old Boss.”

FedWatch Advisors founder Ben Emons also flagged China’s cheaper chips as a risk to GPU collateral values underpinning the debt.

Stock Comparison

StockMarket Cap52-Week RangeYTD
Nvidia$5.45 Trillion$164.07–$236.54+19.30%
Goldman Sachs$303.58 Billion$705.55–$1,153.99+14.03%

According to Benzinga Pro data, GS closed at 1,042.63, up 0.52%, on Thursday, while NVDA closed at 225.30, up 0.54%.

Benzinga’s Edge Stock Rankings indicate that GS is experiencing short-term consolidation along with medium and long-term upward movement.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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