10:52 AM EDT, 08/11/2026 (MT Newswires) -- Nvidia ( NVDA ) is mobilizing up to $500 billion to fund artificial intelligence infrastructure, with limited co-investment support, while addressing circular financing concerns, Morgan Stanley said in a note Tuesday.

The company said Monday it is collaborating with Apollo (APO), BlackRock (BLK), Blackstone (BX), Brookfield (BN), Goldman Sachs (GS) and KKR (KKR) to launch this investment initiative.

Chief Executive Jensen Huang said on X that the initiative is designed to address concerns around "circularity." If the company's participation is limited to 25% or less, while third-party investors make the primary investment decisions, this could help ease concerns that Nvidia's ( NVDA ) investments are driven mainly by circular financing motivations, Morgan Stanley said.

The bank said that there are still important unknowns. The $500 billion figure represents the total potential investment capacity, not committed funding. Individual projects will still be evaluated on their own merits, so there is no guarantee that these funds are deployed.

"The Nvidia ( NVDA ) co-investment also could become complicated. In our view, we would prefer a backstop which involves GPU usage rather than pure credit backing," it added.

Morgan Stanley has an overweight rating and a $288 price target on Nvidia ( NVDA ).

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