670 trillion won AI financial plan 'shaken' due to Jensen Huang's resignation... movement away from financial companies

In the aftermath of the resignation of former Nvidia CEO Jensen Hwang, the $500 billion (approximately KRW 670 trillion) artificial intelligence (AI) industry financial support plan that he personally led is also in a state of shakiness.

The New York Times (NYT) reported on the 13th (local time) that the financial support plan is currently in a state of flux, citing three officials involved in the plan.

In particular, it was reported that at least one of the six financial institutions that originally planned to participate discussed withdrawing their participation the day before.

Last August, former CEO Hwang announced the goal of providing funds for AI computing-related transactions worth a total of $500 billion together with executives from six financial companies, including Apollo Global Management, BlackRock, Blackstone, Brookfield Asset Management, Goldman Sachs, and KKR.

However, it is known that no loan has actually been implemented under this plan to date.

This initiative was promoted by former CEO Hwang by rallying large financial institutions on Wall Street to help AI companies raise the funds needed to purchase expensive semiconductors.

It is known that former CEO Hwang contacted Goldman Sachs CEO David Solomon and others directly and proposed forming a loan consortium in which financial institutions jointly participate.

However, the NYT reported that at the time, no funds were actually raised, and even some financial companies were unaware of the plan.

It appears that this plan had difficulties in implementation due to differences of opinion over the terms of financial guarantees even before the resignation of former CEO Hwang.

Citing people familiar with the matter, Bloomberg News reported on this day that Nvidia has been receiving requests from some customers and Wall Street partners to expand the size of financial guarantees over the past month.

Bloomberg, citing an official, said that Nvidia is expected to announce the completion of the deal in January of next year at the earliest.

Even this is on the premise that former CEO Hwang's resignation does not nullify individual transactions or the overall financial support plan.

In addition to these financial support initiatives, former CEO Hwang has led large-scale investments and financial transactions throughout the AI ​​industry.

Nvidia has secured shares in data center companies such as Coreweave, Nevius, and Iren, and has also pursued investments and acquisitions in AI semiconductors and related technology companies.

These transactions have generated billions of dollars in fee income for Wall Street banks, asset managers, and advisors.

“Nvidia is the central bank of the AI ​​industry,” said Michael Edwards, director of Forum Markets, an investment bank specializing in AI. “Imagine the Federal Reserve without a chairman.”

However, some believe that the company's fundamental influence is still intact, given that NVIDIA maintains a strong influence in the global supply of AI semiconductors and has abundant cash, and the Trump administration is also friendly to the regulatory agenda of the AI ​​industry.