{"id":857278,"date":"2026-08-14T02:22:35","date_gmt":"2026-08-14T02:22:35","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/857278\/"},"modified":"2026-08-14T02:22:35","modified_gmt":"2026-08-14T02:22:35","slug":"brookfield-corp-says-it-can-manage-the-risks-of-financing-nvidias-soaring-growth","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/857278\/","title":{"rendered":"Brookfield Corp. says it can manage the risks of financing Nvidia\u2019s soaring growth"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

Brookfield Place in Toronto\u2019s financial district.Fred Lum\/the Globe and Mail<\/p>\n

Brookfield Corp. says it can manage the risks in financing the expanding cost of computing power for artificial intelligence through a US$500-billion partnership with chip maker Nvidia Corp. and other financial-sector heavyweights. <\/p>\n

Until recently, Brookfield had largely focused on backing the development of new AI infrastructure, such as data centres and the huge amounts of energy needed to run them. <\/p>\n

Now, Brookfield is one of six major financial institutions, including Blackstone Inc. and Goldman Sachs Group Inc., that plan to jointly raise as much as US$500-billion<\/a> to finance the purchase of chips needed to support the rapid expansion of the AI sector. <\/p>\n

Nvidia, Wall Street giants partner to raise $500-billion for AI infrastructure<\/a><\/p>\n

\u201cWe\u2019re very excited about the opportunity,\u201d Brookfield Corp. chief financial officer Nick Goodman said on a Thursday conference call discussing the company\u2019s second-quarter financial results. <\/p>\n

\u201cCompute is the critical part of the infra stack supporting AI,\u201d he said, referring to the different layers of infrastructure behind the technology. <\/p>\n

Brookfield Corp. is the parent company of Brookfield Asset Management Ltd., which oversees more than US$1-trillion of assets across infrastructure, private equity, renewable energy, real estate, credit and insurance. <\/p>\n

The breakneck pace of construction of new data centres and AI infrastructure, backed by vast pools of money, are fuelling fears that an investment bubble could be forming even as demand is increasing for AI tools and the compute to run them.<\/p>\n

Some investors have also questioned the apparently circular nature of deals in which Nvidia invests in companies that are major buyers of its advanced chips.<\/p>\n

The new partnership between Nvidia, Brookfield and other Wall Street financial giants \u2013 which is so far outlined in a memorandum of understanding \u2013 represents an attempt to create robust and affordable ways to borrow to support the sector\u2019s continued expansion. <\/p>\n

The graphics processing units (GPUs) needed to run large AI models \u201ccan represent half of the required capital to complete the build,\u201d Mr. Goodman said. \u201cSo, finding efficient ways to finance the equipment is becoming increasingly important.\u201d<\/p>\n

He said Brookfield mitigates the risks inherent in investing in AI by signing contracts that promise cash flows, and by dealing with established companies such as major technology providers that Brookfield considers less likely to default on loans, Mr. Goodman said. <\/p>\n

Opinion: Canadians are invested in the wrong segment of AI \u2013 without even knowing it<\/a><\/p>\n

Those companies include the hyperscale AI labs, chip providers and customers that buy computing power, which form the main base of customers for Nvidia\u2019s cutting-edge products. <\/p>\n

\u201cWe believe we can invest around this with the right risk controls,\u201d Mr. Goodman said. <\/p>\n

He also said the revenue from those contracts is still comparatively small, relative to Brookfield\u2019s overall business. <\/p>\n

\u201cWe believe that we are not really stepping out from our historical focus on risk management and earning attractive returns while taking a moderate amount of risk, but we can do it at scale here.\u201d<\/p>\n

Brookfield Corp. reported a 15-per-cent increase in second-quarter distributable earnings \u2013 a measure it uses as a proxy for cash earnings that could be paid to shareholders \u2013 to US$1.4-billion, or 61 US cents a share, compared with the same quarter last year. <\/p>\n

Profit was US$703-million, or 14 US cents a share, compared with US$1.1-billion, or 10 US cents a share, a year earlier. <\/p>\n

Brookfield raised US$77-billion in the second quarter, much of it from the company\u2019s acquisition of British-based insurer Just Group PLC, bringing its half-year fundraising total to US$98-billion.<\/p>\n

Last week, Brookfield\u2019s asset-management arm reported higher quarterly profits<\/a> and a similar, 15-per-cent increase in distributable earnings.<\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: Brookfield Place in Toronto\u2019s financial district.Fred Lum\/the Globe and Mail Brookfield Corp. says…\n","protected":false},"author":2,"featured_media":857279,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[62,901,276,277,888,902,879,877,903,49,48,876,895,896,891,878,875,46,549,295,894,887,914,880,881,893,889,890,884,904,885,909,910,912,907,911,905,908,882,898,899,714,897,906,865,61,900,892,886,883,913],"class_list":["post-857278","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-alberta","tag-artificial-intelligence","tag-artificialintelligence","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","tag-ca","tag-canada","tag-canada-news","tag-canada-sports","tag-canada-sports-news","tag-canada-trafficcanada-weather","tag-canadian-breaking-news","tag-canadian-news","tag-economy","tag-education","tag-environment","tag-federal-government","tag-foreign-news","tag-globe-and-mail","tag-globe-and-mail-breaking-news","tag-globe-and-mail-canada-news","tag-government","tag-life-news","tag-lifestyle","tag-local-news","tag-manitoba","tag-national-news","tag-new-brunswick","tag-newfoundland-and-labrador","tag-northwest-territories","tag-nova-scotia","tag-nunavut","tag-ontario","tag-pei","tag-photos","tag-political-news","tag-political-opinion","tag-politics","tag-politics-news","tag-quebec","tag-sports-news","tag-technology","tag-travel","tag-trudeau","tag-us-news","tag-world-news","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/857278","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=857278"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/857278\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/857279"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=857278"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=857278"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=857278"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}