Key insights
- KKR has launched Helix Digital Infrastructure with over $10 billion in capital, backed by Nvidia and Vistra, to fund AI infrastructure development. This move highlights the significant private capital flowing into AI-related hardware and data centers, driven by surging demand. While positive for companies involved in AI supply chains and infrastructure, it also underscores potential power and component constraints, which could indirectly impact the pace of AI adoption and related tech stock performance.
June 11 (Reuters) - A KKR-led group on Thursday launched a new company with more than $10 billion in committed capital to finance the build-out of AI infrastructure, the latest effort by an alternative asset manager to capitalize on growing demand for AI services.
The Kuwait Investment Authority, AI chip giant Nvidia and utility firm Vistra are anchor investors in the company, called Helix Digital Infrastructure, which is led by former Amazon Web Services CEO Adam Selipsky.
A surge in U.S. data-center construction has strained power supply and sparked a shortage of electronics components, slowing development of facilities key to Big Tech’s AI ambitions.
That, along with growing costs of the projects, is making private equity a funding source for the industry. Apollo and Blackstone said on Tuesday they would finance a $35 billion expansion of AI capacity for Anthropic using Broadcom’s custom chips as part of a new tie-up.
Nvidia will help Helix with its expertise in designing AI data-centers, while Vistra will be the preferred power provider.
Helix can add additional institutional investors after the founding commitments are closed, said KKR, whose infrastructure platform manages over $100 billion in assets, including more than $70 billion across digital and power.
"Large users of digital infrastructure have an urgent need to reduce complexity and unlock new capacity," Selipsky said.
He stepped down as the AWS chief in May 2024, after doubling the division’s sales and operating profit since being appointed in 2021.
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