Author: The Business Worldwide

Nvidia is partnering with some of Wall Street’s biggest financial institutions to help accelerate the global build-out of artificial intelligence infrastructure, creating a financing ecosystem that could mobilize hundreds of billions of dollars. However, concerns are growing over whether the structure could amplify financial risks if AI demand fails to meet expectations.

Nvidia Builds a $500 Billion Financing Network

Nvidia is working with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR on financing platforms designed to mobilize more than $500 billion in third-party capital for AI infrastructure over time.

The initiative is aimed at helping data-center developers and other infrastructure operators secure the capital needed to purchase advanced computing equipment and expand capacity as demand for AI continues to surge.

Nvidia has emphasized that the $500 billion figure does not represent revenue or a single committed investment fund. Instead, the financing arrangements involve multiple platforms in which financial institutions will independently evaluate customer demand, infrastructure utilization, cash flows and the residual value of equipment.

Ali Meli, managing partner and chief investment officer at Monachil Capital Partners, has examined the financing structure and highlighted the risks associated with the growing dependence on leveraged capital.

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The Leverage Question

The financing model has also attracted criticism from Michael Burry, the investor best known for predicting the housing-market collapse ahead of the 2008 financial crisis.

Burry has taken aim at Nvidia’s broader AI-infrastructure financing strategy, arguing that Wall Street could be creating a highly leveraged system around continued demand for GPUs. His concern centers on whether the underlying economics of AI infrastructure can ultimately support the scale of capital being deployed.

According to Burry’s criticism, some structures could involve private credit and asset-backed debt, with Nvidia-related capital potentially helping finance purchases of Nvidia GPUs. Such arrangements could create interconnected exposures if demand, utilization or cash flows weaken.

AI Boom Meets Financial Risk

The debate highlights a critical question for the AI investment cycle: whether soaring demand for computing infrastructure is being driven primarily by sustainable end-user economics or increasingly sophisticated financing mechanisms.

For Nvidia and its financial partners, access to capital can accelerate data-center construction and expand the company’s addressable market. But if AI infrastructure operators struggle to generate sufficient returns, leverage could magnify losses across the financing chain.

As Wall Street commits increasingly large sums to AI infrastructure, the sustainability of the boom may depend not only on GPU demand, but also on whether the economics behind that demand remain strong.

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Oracle shares is preparing another round of layoffs this month as the technology giant looks to reduce payroll while committing billions of dollars to artificial intelligence infrastructure, according to people familiar with the plans and an internal document reviewed by Business Insider.

The proposed cuts could affect double-digit percentages of employees in some teams, according to the document. Managers have reportedly been asked to identify employees who could be affected, with the company aiming to reduce payroll before the start of its second quarter on September 1.

Oracle did not comment on the potential layoffs.

The planned reductions would follow significant workforce cuts earlier this year. Oracle’s employee count fell by approximately 21,000, or 13%, during fiscal 2026, which ended May 31, according to a recent company filing. The company currently employs around 141,000 people.

AI Boom Comes With Heavy Spending

The potential layoffs highlight the financial pressures accompanying Oracle’s aggressive expansion into AI infrastructure. The company is investing heavily in data centers, computing equipment and chips to meet rapidly rising demand for AI-related computing capacity, while simultaneously seeking savings across its operations.

Oracle shares spent $55.7 billion on infrastructure during fiscal 2026, including new data centers. Its cash spending exceeded cash inflows by $23.7 billion during the year, underscoring the scale of its investment program.

To finance the expansion, Oracle raised approximately $43 billion through debt and another $5 billion through stock sales in fiscal 2026. The company expects to raise an additional $40 billion through a combination of debt and equity during the current fiscal year.

Strong AI Demand, Growing Financial Pressure

Oracle has pointed to surging demand as a key reason for its infrastructure investments. Revenue increased 17% in fiscal 2026, while its cloud infrastructure business expanded by 77%, reflecting growing demand for computing resources needed to power AI applications.

However, the rapid expansion represents a major shift for Oracle, whose traditional business was built around database software. The company must now balance significant capital expenditure with investor expectations for sustainable profitability.

Stock Faces Broader AI Concerns

Oracle shares have declined nearly 26% this year, reflecting investor concerns over escalating infrastructure costs and the financial burden of the AI buildout.

The stock may also be affected by broader fears that AI could disrupt traditional software businesses. As Oracle spends heavily to benefit from AI demand, investors are increasingly focused on whether the resulting growth will be sufficient to justify the company’s substantial investment and financing requirements.

Also Read :- Nvidia Targets $500 Billion Financing Push to Make AI Chips an Investable Asset

Nvidia is seeking to transform artificial intelligence chips into a new investable asset class through a financing initiative that could mobilize more than $500 billion in third-party capital.

The chipmaker has signed memorandums of understanding with six major asset managers Apollo Global Management, Blackstone, BlackRock, Brookfield Asset Management, Goldman Sachs and KKR to establish financing platforms for customers building AI infrastructure.

The initiative is designed to help hyperscalers, frontier AI laboratories and enterprises fund data centers and acquire Nvidia hardware without relying entirely on their own balance sheets.

GPUs Positioned as Revenue-Generating Assets

Nvidia CEO Jensen Huang told CNBC that technology chips have become investable because they are increasingly productive, long-lived, transferable and capable of generating revenue.

The initiative challenges the traditional view of GPUs as rapidly depreciating technology hardware. Nvidia is instead positioning computing equipment as infrastructure that can be financed similarly to commercial real estate, transportation assets and other long-duration investments.

Huang argued that computing has become a fundamental part of modern infrastructure, comparable to electricity and the internet. The approach could allow lenders and institutional investors to assess AI computing capacity based on its ability to generate long-term economic value.

However, questions remain over how well Nvidia’s chips will retain their value as newer generations of processors emerge and technological cycles accelerate.

Wall Street Sees a New Financing Market

Major alternative asset managers are increasingly targeting digital infrastructure as institutional and insurance capital seeks exposure to the AI investment boom.

Blackstone President Jon Gray said AI compute could become a financeable asset class similar to property, while highlighting rapidly rising demand for AI infrastructure among the firm’s portfolio companies.

BlackRock CEO Larry Fink described the initiative as the beginning of a new phase of financial engineering, comparing its potential significance with the development of mortgage-backed securities.

Goldman Sachs CEO David Solomon said the partnership could help establish a credit market backed by Nvidia computing assets.

Financing AI’s Massive Capital Needs

The initiative comes as technology companies face enormous capital requirements for AI data centers and hardware. Rising spending has raised concerns about free cash flow and increasing debt burdens among major technology firms.

By bringing Wall Street capital directly into AI infrastructure financing, Nvidia aims to accelerate deployment while potentially establishing a new financial market around computing capacity.

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Texas quarterback Arch Manning has slipped to No. 20 in the latest national name, image and
likeness NIL rankings, reflecting a significant decline in his estimated market value since he
first entered the college football spotlight.

Manning was once ranked No. 1 nationally with an estimated NIL valuation of $6.8 million.
That figure came during a period when expectations surrounding the highly touted
quarterback were exceptionally high, despite his limited experience at the college level.
The Texas star spent his first two seasons seeing relatively little action, leaving much of his
potential untested on the field. As his college career has progressed, however, his NIL
valuation has shifted alongside expectations surrounding his development.

Current Valuation Stands at $2.5 Million

According to the latest On3 NIL rankings, Manning is now ranked 20th nationally among
college football players. His current estimated NIL value stands at approximately $2.5
million.
The change represents a substantial decline from his previous $6.8 million valuation,
underscoring how NIL rankings can fluctuate as a player’s exposure, production and market
appeal evolve.
Manning entered Texas with enormous expectations, largely because of his family name and
pedigree. As the nephew of NFL legends Peyton and Eli Manning and the grandson of former
NFL quarterback Archie Manning, he arrived in Austin as one of the most closely watched
prospects in college football.

Pressure Builds at Texas

While Manning’s NIL valuation has fallen, attention surrounding the quarterback remains
high as he prepares for a more prominent role with the Longhorns.
His limited playing time during his first two seasons meant that his national reputation was
built largely on potential rather than an extensive college résumé. Greater opportunities on
the field could now play an important role in determining both his football profile and
commercial value.
For Manning, the latest ranking highlights the changing nature of the college sports
marketplace. NIL valuations are increasingly influenced by playing time, performance,
visibility and fan engagement, making them subject to significant changes as athletes’
circumstances evolve.
At $2.5 million, Manning remains one of the most valuable players in college football from
an NIL perspective. However, his move from No. 1 to No. 20 illustrates just how
dramatically expectations and valuations can change before a highly touted quarterback
establishes himself on the field

Also Read :- SpaceX Beats Revenue Estimates, but Rising AI Investments Weigh on Shares

SpaceX reported stronger-than-expected second-quarter results in its first earnings release since its record-setting initial public offering (IPO) in June. Despite robust revenue growth and a narrower-than-expected loss, the company’s shares fell about 8% in extended trading as investors focused on soaring capital expenditures tied to artificial intelligence (AI) investments.

The Elon Musk-led company posted revenue of $7.81 billion, surpassing analysts’ estimates of $6.93 billion, according to LSEG. SpaceX reported a loss of 9 cents per share, significantly better than the expected loss of 26 cents per share.

Revenue surged 92% year-on-year from $4.1 billion, while net losses narrowed to $541 million, compared with $1 billion in the same period last year. However, the stock has declined around 16% since debuting at $150 on June 12, reflecting investor concerns over profitability.

AI Investments Continue to Pressure Earnings

SpaceX’s financial performance continues to be weighed down by aggressive spending on AI infrastructure. The company reported a $4.9 billion loss in 2025, largely driven by investments following its merger with Musk’s AI venture, xAI, earlier this year. The merger supports the company’s long-term vision of developing AI-powered data centers in space.

Even its core launch business, supported by contracts from NASA and the U.S. Department of Defense, remained unprofitable. During the quarter, the space segment generated $962 million in revenue, above expectations of $835 million, but recorded an operating loss of $542 million.

The AI division also outperformed revenue estimates, generating $2.56 billion against expectations of $2.18 billion, though it posted an operating loss of $1.26 billion.

Starlink Drives Profitability

SpaceX’s connectivity business, anchored by its Starlink satellite internet service, remained the company’s strongest performer. The segment generated $4.29 billion in revenue, exceeding forecasts of $3.83 billion, and delivered an operating profit of $1.66 billion, making it the company’s only profitable business.

Starlink Mobile Expansion Underway

President and COO Gwynne Shotwell said SpaceX expanded Starlink Mobile partnerships during the quarter with international telecom operators, including SoftBank, NTT DoCoMo and Spark New Zealand.

The company plans to launch next-generation Starlink V2 satellites aboard Starship before integrating EchoStar spectrum next year, following recent FCC approval. Shotwell said SpaceX expects to begin serving U.S. mobile customers—including those of AT&T, Verizon and T-Mobile—as early as next year, with a standalone Starlink Mobile service targeted for launch by the end of 2027.

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Conflicting statements from the United States and Iran over the status of diplomatic talks have heightened uncertainty surrounding efforts to end the five-month-long conflict between the two countries. The Donald Trump latest developments, coupled with continued disruptions to shipping in the Strait of Hormuz, have also renewed concerns over global energy security and trade.

While U.S. President Donald Trump indicated that negotiations with Tehran are underway, Iranian officials maintained that no such discussions are taking place, exposing a widening gap between the two sides’ public positions.

Trump Suspends Planned Military Action

President Donald Trump revealed that he had recently halted plans for what he described as “massive attacks” against Iran, saying the decision was made to allow room for diplomatic engagement.

Speaking at an Oval Office event, Trump said negotiations were progressing at the request of Iran and regional stakeholders, including Saudi Arabia, the United Arab Emirates and Qatar. He also characterised the current diplomatic window as Tehran’s “last chance” to reach a favourable agreement with the United States.

The decision to pause military action follows a pattern in which the U.S. administration has threatened significant military measures before opting to pursue diplomatic alternatives.

Iran Rejects Claims of Ongoing Negotiations

Iran, however, dismissed the U.S. President Donald Trump remarks. Foreign Ministry spokesperson Esmail Baghaei stated that no negotiations with Washington were currently taking place and that no meetings had been scheduled.

According to Baghaei, Iran has no plans to host foreign delegations or dispatch negotiators abroad in the coming days. He added that all members of Iran’s negotiating team remain in the country, with the exception of Foreign Minister Abbas Araqchi, who is currently on a religious pilgrimage in Iraq.

Baghaei said the only active discussions involve Oman and relate to the management of shipping through the Strait of Hormuz.

Strait of Hormuz Remains Under Pressure

The uncertainty surrounding diplomatic efforts continues to coincide with heightened tensions in the Strait of Hormuz, one of the world’s most strategically important maritime trade routes. The waterway carries roughly one-fifth of global crude oil and liquefied natural gas shipments, making any disruption a significant concern for international energy markets.

Maritime security concerns intensified after a cargo vessel reported being struck by an unidentified projectile near the Omani coast, according to the United Kingdom Maritime Trade Operations (UKMTO) agency.

Shipping Activity Stays Subdued

Commercial traffic through the Strait of Hormuz remained limited as security risks persisted. Data from maritime analytics firm Kpler showed that only six vessels—comprising three oil tankers and three bulk carriers—transited the strait on Monday, down from seven vessels the previous day.

The subdued level of shipping activity underscores the continuing geopolitical tensions in the Gulf and reflects the cautious approach being adopted by shipping operators amid ongoing uncertainty.

Energy Markets Monitor Diplomatic Developments

With Washington and Tehran offering conflicting accounts of the diplomatic process, global markets remain focused on whether negotiations can gain momentum and reduce tensions in the region. Until greater clarity emerges, developments in the Strait of Hormuz are expected to remain a key indicator for global energy supplies and international trade.

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