Nvidia’s ‘circular’ AI financing deals in focus as Firmus raises another $730m
The $4 trillion chipmaker’s strategy of investing in its own customers has been highly criticised, including by a prophet of the global financial crisis. Now it has come to Australia.
When news first emerged in February that AI infrastructure company Firmus was re-opening its books for yet another pre-IPO equity raise, initial chatter suggested the round would be restricted to new strategic investors only — namely potential hyperscaler customers like Facebook owner Meta.
Instead it was two of the company’s existing backers that returned as the headline participants for the USD505 million ($730 million) raise.
One was New York-based venture firm Coatue Management, which supported Firmus’ recently announced USD10 billion debt facility led by Blackstone.
The other was USD4 trillion AI chipmaker Nvidia, which agreed a strategic partnership with Firmus last October. It participated in the latest raise “subject to certain closing conditions,” according to a Firmus statement, but the quantum and structure of that participation remains unclear.
