Goldman Sachs Group Inc. (NYSE: GS) is reportedly in talks with potential investors to participate in Nvidia Corp.’s (NASDAQ: NVDA) initiative to unlock more than $500 billion in third-party capital for AI infrastructure. According to Reuters, the bank aims to supply junior capital and private credit while helping place debt into both private and public markets. Asset managers involved in the partnership plan to retain a sizable share of the financing.

Nvidia CEO Jensen Huang unveiled the plan on Monday alongside Apollo Global Management Inc., BlackRock Inc., Blackstone Inc., Brookfield Asset Management Inc., Goldman Sachs, and KKR & Co. Inc. In a CNBC interview, Goldman CEO David Solomon stated that Huang approached the bank with the idea for the financing structure, which Goldman welcomed. Solomon noted that the bank has advised Nvidia on its $6.9 billion acquisition of Mellanox Technologies and served as a joint book-running manager on Nvidia’s June $25 billion bond sale.

Strategic Partners and Capital Pools

The collaboration integrates Nvidia’s accelerated computing platform with the long-term capital capabilities of leading alternative asset managers and investment banks. Each partner has committed to creating dedicated financing structures to support the deployment of Nvidia compute assets. The effort aims to help hyperscalers, AI labs, and enterprises fund data centers through institutional credit and private investment.

Jim Zelter, President of Apollo, noted that modern compute has emerged as a scarce, mission-critical asset class. Larry Fink, Chairman and CEO of BlackRock, added that the partnership deepens their existing relationship and connects long-term capital to essential infrastructure.

Market Sentiment and Skepticism

Despite the institutional backing, the financing model faces scrutiny. Famed investor Michael Burry sharply criticized the initiative, labeling it a "Wall Street stunt" that relies on opaque private credit arrangements. Burry warned that the deal involves Nvidia taking 25% stakes and providing residual value guarantees on chip purchases, arguing that the structure may not offer genuine diversification or risk mitigation.

The financing model treats Nvidia’s AI infrastructure as an "investable asset." However, unlike traditional infrastructure, cutting-edge GPUs depreciate quickly as newer chips arrive. Ben Emons, founder of FedWatch Advisors, estimates that investors may demand high-yield returns of roughly 11% to 17% to compensate for this depreciation risk, particularly if Chinese chipmakers offer cheaper alternatives. Emons also flagged China’s cheaper chips as a risk to GPU collateral values underpinning the debt.

Jensen Huang argues that Nvidia’s CUDA software ecosystem can keep older GPUs productive for longer, mitigating some depreciation concerns. Additionally, U.S. restrictions have limited access to leading Chinese AI chips, including Huawei Technologies’ Ascend processors, providing a temporary competitive moat.

Stock Performance

According to Benzinga Pro data, Goldman Sachs closed at 1,042.63, up 0.52%, on Thursday, while Nvidia closed at 225.30, up 0.54%. Nvidia’s market cap stands at $5.45 trillion with a year-to-date gain of 19.30%. Goldman Sachs has a market cap of $303.58 billion with a year-to-date gain of 14.03%.

Bank of America analyst Vivek Arya maintained Nvidia as a "top pick" with a $350 price target. BofA forecasts quarterly revenue of $94 billion to $95 billion, roughly $3 billion to $4 billion above the company’s $91 billion guidance.

What the Numbers Show

The divergence between bullish analyst estimates and cautious market sentiment highlights the complexity of Nvidia’s new financing model. While Polymarket assigns only a 9% chance that Nvidia shares will close above $250 by Aug. 31, Bank of America projects significant revenue growth. The key risk lies in the durability of GPU values as collateral; if Chinese competitors successfully scale cheaper alternatives, the high-yield returns demanded by investors could pressure the profitability of these financing structures. This dynamic underscores the tension between rapid technological obsolescence and the long-duration nature of institutional capital.

Regulatory and Forward-Looking Disclosures

These partnerships remain subject to the execution of final agreements. The press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 for Nvidia, Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR. These statements involve risks and uncertainties, including global economic conditions, technological development, competition, and regulatory changes. Investors are cautioned that actual results could differ materially from those anticipated in these forward-looking statements.

Nvidia Corp (NASDAQ: NVDA) is accelerating development of its next-generation Feynman AI platform, pushing Taiwan Semiconductor Manufacturing Co. (NYSE: TSM) to fast-track advanced chipmaking and packaging capacity ahead of an expected 2028 launch. The shift in resources toward Feynman occurs as Nvidia’s Vera Rubin platform enters mass production.

Architectural Evolution

Feynman is expected to feature 3D chiplets, TSMC’s System on Integrated Chips (SoIC) technology, high-bandwidth memory (HBM), and co-packaged optics (CPO). This represents a major architectural evolution from the Rubin platform. Industry sources expect Feynman to use TSMC’s upgraded 2nm-class A16 process.

The platform could push NVLink bandwidth beyond 1,000 terabytes per second, or 1 petabyte per second, as Nvidia builds increasingly large AI clusters.

TSMC Capacity Expansion

The accelerated roadmap is putting additional pressure on TSMC to expand advanced packaging capacity. TSMC is accelerating construction at its AP7 facility in Chiayi and at AP8 in the Southern Taiwan Science Park, while preparing capacity for SoIC, CoWoS-L, and next-generation CoPoS technologies.

TSMC’s SoIC technology enables chips to be stacked vertically, potentially improving bandwidth while reducing latency and power consumption. The report said TSMC could increase monthly SoIC capacity to approximately 50,000 wafers by the end of 2027, up significantly from earlier plans.

Revenue Forecasts

Nvidia is scheduled to report its second-quarter results on Aug. 26. Bank of America analyst Vivek Arya maintained Nvidia as a "top pick" with a $350 price target, representing 56.3% upside from the stock’s $223.96 price at the time.

BofA forecasts Nvidia’s quarterly revenue at $94 billion to $95 billion, about $3 billion to $4 billion above the company’s $91 billion guidance. The bank also expects third-quarter guidance of $107 billion to $108 billion, above the consensus estimate of roughly $104 billion.

What the Numbers Show

Bank of America’s revenue forecast implies a significant upside to Nvidia’s own guidance. The $3 billion to $4 billion gap between BofA’s Q2 forecast ($94 billion to $95 billion) and Nvidia’s guidance ($91 billion) suggests analysts anticipate stronger-than-expected demand or pricing power in the current quarter. Additionally, the Q3 forecast ($107 billion to $108 billion) exceeds consensus estimates ($104 billion) by approximately $3 billion to $4 billion, indicating sustained confidence in growth momentum beyond the immediate quarter.

Market Context

Nvidia has also begun working with major financial institutions on an AI infrastructure financing platform that targets more than $500 billion in third-party capital.

Nvidia closed at $225.30 on Thursday, up 0.54%, while Friday’s premarket shares were down 0.02% at $225.25. According to Benzinga Edge Rankings, Nvidia ranks in the 99th percentile for growth and maintains positive short-, medium- and long-term price trend ratings.

TSMC and Nvidia did not immediately respond to Benzinga’s request for comment.