Nvidia shares dropped about 2.5% on Monday after the Financial Times reported the AI darling was working with some of Wall Street’s largest financial firms to create a $500 billion AI infrastructure funding package, which has drawn concern over concentration risk.

Nvidia’s stock fell 2.4% to around $218 per share, cooling off after rallying 5.6% in the last five days of trading.

The company’s market capitalization dropped $130 billion, with the report briefly sending the stock down 3% on the day as of around 12:30 p.m. EDT.

Nvidia is reportedly working with Apollo Global, Blackstone, BlackRock, Brookfield Asset Management, Goldman Sachs and KKR to invest in AI infrastructure, according to FT, which cited six unnamed people familiar with the matter.

Nvidia typically provides financial backing to help AI partners raise debt, which boosts Nvidia's chip revenue as the nature of such deals has ginned up concerns over concentrated risk in the technology sector.

Morningstar's Mike Coop said last week the concentration of AI across technology, communication services and utilities reminded him “quite a lot of 1999,” noting, “that question about diversification does need to be looked at seriously."

Nvidia’s tumble, paired with a positive day of trading for Oracle, allowed Oracle co-founder Larry Ellison to overtake Nvidia chief Jensen Huang as the world’s seventh-wealthiest person . Ellison’s estimated net worth reached $192 billion in the afternoon while Huang’s dropped to $188.6 billion.

Nvidia will report its second quarter earnings on Aug. 26, allowing investors to better understand if AI chip demand is justifying the boom in AI infrastructure being pioneered by companies like Nvidia, Intel and CoreWeave.

Nvidia has become a top AI infrastructure stock, posting $81.6 billion in revenue (up about 85% year-over-year) in addition to net income of $58.3 billion in its first quarter. The company’s stock has benefited, rising 17% since the start of the year as overall demand for AI assets increases. Nvidia’s success has allowed it to back its clients’ debt raises to accelerate chip purchases, something Apollo and Blackstone have used to fund infrastructure spending from companies like Anthropic, according to the Financial Times.

Larry Ellison Overtakes Jensen Huang As 7th-Wealthiest Person In The World As Nvidia Shares Fall (Forbes)