KKR launches $10 billion AI infrastructure company with Nvidia, Vistra


FILE PHOTO: Trading information for KKR & Co is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., August 23, 2018. REUTERS/Brendan McDermid/File Photo

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.

(Reporting by Anhata Rooprai in Bengaluru; Editing by Shilpi Majumdar)

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