KKR, Nvidia, and Vistra Launch $10B Helix Digital Infrastructure for AI
Major Investment in AI Infrastructure Development
Launch of Helix Digital Infrastructure
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.
Key Investors and Leadership
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.
Challenges in Data-Center Construction
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.
Role of Private Equity in AI Expansion
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.
Strategic Partnerships and Future Plans
Nvidia and Vistra's Contributions
Nvidia will help Helix with its expertise in designing AI data-centers, while Vistra will be the preferred power provider.
Potential for Additional Investors
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.
Leadership Perspective
"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)
