Brookfield Corp. says it can manage the risks of financing Nvidia’s soaring growth

Brookfield Corp. says it can manage the risks in financing the expanding cost of computing power for artificial intelligence through a US$500-billion partnership with chip maker Nvidia Corp. and other financial-sector heavyweights.

Until recently, Brookfield had largely focused on backing the development of new AI infrastructure, such as data centres and the huge amounts of energy needed to run them.

Now, Brookfield is one of six major financial institutions, including Blackstone Inc. and Goldman Sachs Group Inc., that plan to jointly raise as much as US$500-billion to finance the purchase of chips needed to support the rapid expansion of the AI sector.

Nvidia, Wall Street giants partner to raise $500-billion for AI infrastructure

“We’re very excited about the opportunity,” Brookfield Corp. chief financial officer Nick Goodman said on a Thursday conference call discussing the company’s second-quarter financial results.

“Compute is the critical part of the infra stack supporting AI,” he said, referring to the different layers of infrastructure behind the technology.

Brookfield Corp. is the parent company of Brookfield Asset Management Ltd., which oversees more than US$1-trillion of assets across infrastructure, private equity, renewable energy, real estate, credit and insurance.

The breakneck pace of construction of new data centres and AI infrastructure,…