Evening Digest: Nvidia's $500B AI talks, Intel's $15B share sale

A potential $500 billion AI infrastructure partnership involving Nvidia and major investment firms highlighted another day of aggressive spending on artificial intelligence.

Intel unveiled plans for a $15 billion share sale to strengthen its balance sheet and fund AI initiatives.

Gold prices hovered near a seven-week high as investors awaited key US inflation data and assessed the Federal Reserve's policy outlook.

Meanwhile, Bitcoin slipped below $64,500 as uncertainty surrounding the Strait of Hormuz weighed on broader market sentiment despite continued institutional inflows.

Nvidia reportedly in talks on $500 billion AI infrastructure funding

Nvidia is nearing a partnership with several of the world's largest investment firms on a $500 billion funding initiative aimed at expanding artificial intelligence infrastructure, reported Bloomberg.

According to Bloomberg, Apollo Global Management, Blackstone, BlackRock, Brookfield Asset Management, Goldman Sachs and KKR are among the firms in discussions with Nvidia.

The report did not specify which AI projects or companies would receive the funding, nor whether the $500 billion represents entirely new commitments or includes existing investment plans.

The discussions come as Nvidia continues to expand its role in financing AI infrastructure beyond supplying chips.

Bloomberg previously reported that the company has been in talks to support up to $250 billion in financing to help OpenAI lease computing capacity at a planned $500 billion data center project in Ohio, while also discussing financing as much as $350 billion of OpenAI's purchases of Nvidia chips.

Nvidia shares were down 2% in afternoon trading.

Intel launches $15 billion stock offering to fund AI growth

Intel announced plans to raise $15 billion through a common stock offering as the company seeks additional capital to expand its AI ambitions and strengthen its manufacturing business.

"The offering is intended to further enable Intel to pursue the growth opportunities ahead," the company said.

Intel said proceeds from the offering will be used for general corporate purposes, including investments in artificial intelligence, purpose-built silicon and other growth initiatives.

The offering marks what could be Intel's first public share sale since its 1971 listing.

Shares fell as much as 5.3% following the announcement, as equity offerings typically dilute existing shareholders.

Chief Executive Officer Lip-Bu Tan has prioritized improving Intel's balance sheet while pursuing the company's turnaround strategy.

Gold holds near seven-week high ahead of US inflation data

Gold prices remained near their highest levels in seven weeks as investors awaited US consumer and producer price inflation reports later this week for clues on the Federal Reserve's next policy move.

Spot gold rose 0.94% to $4,382.42 an ounce after reaching $4,371.63 on Friday, its highest level since June 17.

US gold futures also gained 0.94% to $4,440.50.

China also continued supporting the precious metal after official data showed the country's central bank recorded its largest monthly increase in gold reserves since October 2023.

Economists surveyed by Reuters expect US consumer prices to have increased 3.4% year over year in July, down from 3.5% in June.

Traders currently assign a 50% probability of a September rate hike and an 81% chance of another increase in December, according to CME FedWatch.

Bitcoin slips as Hormuz uncertainty weighs on markets

Bitcoin fell below $64,000 on Monday as geopolitical uncertainty surrounding the Strait of Hormuz weighed on risk assets.

The cryptocurrency dropped to $63,752.57, its lowest level since Friday, mirroring weakness in US equities after hopes for a near-term reopening of the strategic oil shipping route faded.

Despite the price weakness, on-chain data suggested institutional demand remains strong.

Glassnode said momentum had improved but cautioned that the recovery "remains tentative" as centralized exchange trading activity stayed relatively subdued.

The analytics firm also noted that US spot Bitcoin ETFs attracted net inflows of $865.3 million last week, while CryptoQuant data showed hedge funds had turned net long CME Bitcoin futures, a move the firm's CEO Ki Young Ju described as "rare."