Huang Renxun Responds to "US$500 Billion Financing" Doubt: Genuine Demand Exists, AI Factory is Becoming an Investable Infrastructure Asset

August 11th, NVIDIA CEO Jensen Huang announced that NVIDIA has partnered with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR to establish an independent financing platform. The plan is to mobilize over $500 billion in third-party capital in the long term to support AI infrastructure development. Huang emphasized that this number is not NVIDIA's revenue, the size of a single fund, or a financing commitment to a single customer.

Huang stated that AI is transitioning from the research phase to large-scale production, and AI factories are becoming investable infrastructure assets. The NVIDIA AI factory consists of accelerated computing, networking, system software, AI frameworks, and a developer ecosystem, serving various customers and workloads, with the ability to redeploy between customers, cloud service providers, and operators. He believes that in the field of AI, "computing power is revenue."

Regarding market concerns about "cyclical financing," Huang said that the design purpose of this plan is to introduce independent, long-term institutional capital. Each financial institution will independently assess the customer, actual needs, equipment utilization, cash flow, and residual value of each project, and decide on providing funding. NVIDIA is responsible for providing the AI factory platform, not determining how capital is allocated. He mentioned that demand comes from cutting-edge AI labs, AI-native companies, cloud service providers, traditional enterprises, and countries building AI services.

At the same time, Huang admitted that in some projects, NVIDIA may provide up to a maximum of "residual value support" equivalent to 25% of the project size. However, such support will be carefully evaluated for each project and will only be used to complement, not replace, the independent underwriting of financial institutions. He stated that the reason NVIDIA can provide such support is because NVIDIA's computing power is versatile, globally adopted, upgradeable through software, and can be redeployed between different customers, helping to maintain the residual value of the equipment.

Regarding whether the market can absorb such a large-scale addition of computing power, Huang said that the key is not "whether data centers are being built," but whether these facilities can become AI factories with real output. Financing partners will continue to evaluate around real customer needs, utilization rates, cash flow, and residual value. The additional capacity will be built on top of real customer economic models. He believes that AI has begun to create tangible value in areas such as software development, drug discovery, product design, customer service, and automated operations, stating that "more computing power leads to better AI, better AI leads to more usage, more usage leads to more revenue."