In what is shaping up as a record-breaking, off-balance sheet SPV deal, one which will send CDS and credit yields surging far beyond where the recent explosion in AI debt has already pushed them, and as shown in the chart below, it's pretty, pretty far...... the FT reports that Nvidia - unable to generate fund the old-fashioned way by earnings - is working with the world’s largest financial groups are to assemble a $500bn funding package for AI infrastructure development, in what will be the biggest AI lending efforts to date of any kind.A consortium of groups including private credit (and equity) giants Apollo, Blackstone, BlackRock, Brookfield, Goldman and KKR is entering a partnership with Nvidia to invest in the AI build-out, the FT cited six people briefed on the talks.The "partnership" as the FT calls it as it sounds a bit better than "hail-may, off-balance sheet arrangement" underscores Nvidia’s increasingly desperate efforts to raise capital for itself and its clients (because everyone now admits that circular financing is absolutely critical to keeping the AI bubble going) to continue assembling the chips, power production and data centers at the heart of the AI boom.The $5.25tn company, whose GPUs underpin most of the leading US AI models available today, has positioned itself at the center of the AI boom, providing chips, infrastructure and software to a wide array of partners developing the technology.More ominously, as it brings back fresh memories of the vendor financing that was in part responsible for the collapse of the dot com bubble, the chipmaker traditionally provides financial backing to help its AI partners raise debt in capital markets, which then helps boost Nvidia’s own revenue, in what has become AI's trademark circle jerk deal. As we have discussed here for the past year, the circular nature of such transactions has raised concerns about concentrated risks in the sector, and it's why NVDA stock slumped immediately after the FT news broke, sliding as much as 2% on the FT report and wiping out more than $70bn in market capitalisation.Separately, Nvidia was in talks to provide a massive guarantee for a 10-gigawatt data centre project in Ohio leased to OpenAI, according to a person familiar with the matter.The deal shows how Nvidia is building relationships with the giants of the private capital industry, which are collectively preparing to invest trillions of dollars of their insurance, retail and institutional investor assets into AI infrastructure. In recent years, private capital groups such as Apollo and Blackstone have structured off-balance sheet SPV, pardon, AI infrastructure deals to assist companies like Anthropic finance their heavy spending on chips and data centers. We discussed this extensively two months ago in "The $1.8 Trillion Off-Balance Sheet Time Bomb At The Heart Of The AI Supercycle", a topic which the FT also caught up with today. The US hyperscalers have now signed up for about $1 trillion of lease commitments that don't appear in their financial data (and are on the hook for another $1 trillion of future purchase commitments). https://t.co/hLnjMGUHzJ pic.twitter.com/Tx2zRfwnIW