Nvidia and 6 Giants, Including BlackRock, Form $500 Billion Alliance: Is This the End of the Road for Those Altcoins?

Nvidia has signed a massive $500 billion collaboration with Wall Street giants to transform AI chips into a financial infrastructure asset, pitting decentralized crypto projects against formidable competition.

Tech giant Nvidia has moved to turn artificial intelligence (AI) computing power into an investable infrastructure asset, much like real estate or power plants. By signing letters of intent with six financial titans—BlackRock, Goldman Sachs, KKR, Apollo, Brookfield, and Blackstone—the company aims to create a capital pool exceeding $500 billion. This move ensures that AI is seen not just as a technology expense, but as a long-term, income-generating investment vehicle.

Nvidia CEO Jensen Huang emphasized that technology chips have become an investable asset class for the first time, noting that these systems are now a fundamental part of infrastructure, like electricity or the internet. In this new model, instead of spending millions of dollars to purchase chips, companies will lease this computing power through established financing platforms. Investors, in turn, will earn regular income from these leasing transactions.

Nvidia and Wall Street Alliance Threatens Crypto DePIN Projects

This massive capital influx poses a serious existential threat to crypto projects that offer decentralized computing power marketplaces, such as Render (RENDER) and Akash (AKT). While decentralized networks attempt to create a marketplace by aggregating the idle computing power of individual users, Nvidia’s institutional-scale move could further widen the gap. Technical analyses show that decentralized networks are struggling to meet institutional demand due to obstacles such as data transmission speeds and the costs of cryptographic verification—the encrypted confirmation of transactions.

The complex structure of AI factories requires high efficiency and uninterrupted connectivity. However, decentralized projects lag far behind the massive capacity offered by Nvidia due to low internet bandwidth and a lack of enterprise-grade service-level agreements. With the backing of Wall Street’s unlimited capital, Nvidia continues to narrow the growth space for crypto-based DePIN projects through the stronghold it has built in AI infrastructure.