BlackRock and Nvidia Just Got Caught In a $4.2 TRILLION Bitcoin Trap! | Bitcoin Simply

**Nico Moran** (0:00)
BlackRock, Blackstone, Apollo and Brookfield, all teaming up with Nvidia to raise 500 billion dollars so companies can borrow money to buy Nvidia GPUs to build AI data centers to keep the AI data boom alive. Bubble anyone? And even though 500 billion dollars sounds historic, it is, it's just the beginning.

**SPEAKER_2** (0:19)
We have a common goal, we need to raise 500 billion dollars. Obviously, that's an unprecedented amount of money, but we're gonna have to raise trillions of dollars over the coming years.

**Nico Moran** (0:28)
This sounds incredibly bullish until you do the math and realize that none of this makes sense. Let me think this says that America is gonna need 70 gigawatts of power to build out the AI infrastructure necessary for America to be the leader. But this is what Jensen Wong had to say about the cost.

**Jensen Huang** (0:41)
It's a hefty price tag. Each gigawatt is something like 50, 60 billion dollars.

**Nico Moran** (0:45)
So if Jensen Wong says that every gigawatt needs 60 billion in investment, and then we need 70 gigawatts of power, that's 4.2 trillion dollars in capital. Where is it gonna come from? The companies that are building out these data centers don't have this much in capital. They're gonna have to borrow it. And this is where things get interesting. Because the world's favorite source of cheap money in Japan, well, the cheap money ain't so cheap. Their 30-year bond yields are going through their roof. And US bond yields are climbing at the same time, at the highest rates they've been since 2007 So this begs the question, who's actually gonna finance this AI revolution when the private capital dries up? Because it seems like the only rational buyer is the US government, the Federal Reserve, or we need to create new monetary units. So this really isn't an Nvidia story. This is how this all connects to Bitcoin. Today, I'm gonna connect the dots between Nvidia, Japan, the US debt markets, and show you how this entire investment thesis comes down to one question. Will the US government have to print money? And if that's the answer, then you know which asset wins the most. This is Dr. Cook with Bitcoin Simply.
Let's go.
massive AI news Nvidia is teaming with BlackRock, Blackstone, Apollo and Brookfield Asset Management to raise $500 billion to finance its own chips so that companies can use it to build AI compute platforms. These are dedicated pools of capital for Nvidia customers to use as financing to buy their chips. Jensen Wong came out with a blog post saying that AI compute chips are now an investible class like real estate. And he answers the question in his own blog post, is this circular financing? No, this is an entirely new model of financing where we pay each other to pay each other to pay each other. But he went on to CNBC to explain a little bit more about this deal and why it's so historic.

**Jensen Huang** (2:31)
We're announcing six partnerships today. These partnerships are going to pull together independent, long-term capital to fund and support AI infrastructure buildout. This is an extraordinary time, as you know, because this is the first time in some 60 years that the computing industry is going through a fundamental platform shift from the way that software was done before to the way that it's going to be done in the future called artificial intelligence.
Fundamentally, what's different about this industry and this way of doing computing is that the computer is now part of the infrastructure, like electricity, like the Internet. And so you have to think about it like it's infrastructure and build it out accordingly. Every company will be powered by it, every country will build it. And so we're talking about an extraordinarily significant infrastructure build. This is- With a very hefty price tag. It's a hefty price tag. Each gigawatt is something like 50, $60 billion. And so there's energy involved, there's land power and shell involved, and of course, there's a computing part of it.
This is, of course, also a milestone for our company. We used to build chips that we sell, and these are technology components that people buy and use. But now, Nvidia's AI factory platform is really an investible asset, an infrastructure asset. And the reason for that is because it's productive, it's revenue generating, it is fungible, it's used by just about every cloud service provider, it runs every AI model, it runs algorithms of all different types. And so it has really broad, deep reach and off-takers. This is a really great opportunity for us to build out the infrastructure, take advantage of an asset that is investible, long life and productive. And with the partnerships that we have here, we can support a really broad ecosystem build out.