Nvidia is reportedly in discussions with several of the world's largest investment firms to back a $500 billion artificial intelligence infrastructure initiative, according to Bloomberg. The talks involve Apollo Global Management, Blackstone, BlackRock, Brookfield Asset Management, Goldman Sachs, and KKR. The funding would expand AI infrastructure, though specifics on projects or whether the amount includes existing commitments remain unclear.
This move underscores Nvidia's growing role in financing AI beyond chip supply. Earlier reports indicated Nvidia was exploring up to $250 billion in financing to help OpenAI lease computing capacity at a planned $500 billion data center in Ohio, and up to $350 billion for OpenAI's chip purchases. Nvidia shares fell 2% in afternoon trading, reflecting investor caution amid the scale of these commitments.
Intel's $15B share sale
Intel announced a $15 billion common stock offering to strengthen its balance sheet and fund AI initiatives. The company said proceeds will support general corporate purposes, including investments in artificial intelligence, purpose-built silicon, and other growth areas. This marks Intel's first public share sale since its 1971 listing, and shares dropped as much as 5.3% on dilution concerns. CEO Lip-Bu Tan has prioritized improving the balance sheet while pursuing a turnaround.
The offering comes as Intel seeks to compete in the AI chip market, where Nvidia and AMD dominate. The capital raise could provide resources for manufacturing expansion and new product development, but investors are weighing near-term dilution against long-term potential.
Gold near seven-week high
Gold prices hovered near their highest levels in seven weeks, with spot gold up 0.94% to $4,382.42 an ounce, after reaching $4,371.63 on Friday. US gold futures also gained 0.94% to $4,440.50. Investors await US consumer and producer price inflation data later this week for clues on Federal Reserve policy. China's central bank recorded its largest monthly gold reserve increase since October 2023, adding support.
Economists expect July consumer prices to rise 3.4% year-over-year, down from 3.5% in June. According to CME FedWatch, traders see a 50% chance of a September rate hike and an 81% chance of another in December.
Bitcoin slips on Hormuz uncertainty
Bitcoin fell below $64,000 on Monday, dropping to $63,752.57, its lowest level since Friday, as geopolitical uncertainty around the Strait of Hormuz weighed on risk assets. Hopes for a near-term reopening of the strategic oil shipping route faded, pressuring equities and crypto alike.
Despite the price weakness, institutional demand remains robust. Glassnode noted improved momentum but cautioned that the recovery is tentative, with centralized exchange trading activity subdued. US spot Bitcoin ETFs attracted net inflows of $865.3 million last week, and CryptoQuant data showed hedge funds turned net long CME Bitcoin futures, a move CEO Ki Young Ju described as "rare."
For more on related market moves, see our coverage on Nvidia's AI financing scrutiny and Intel's share sale trade-off. Also, check how Hormuz and inflation are affecting markets.
This article is for informational purposes only and does not constitute financial advice.
