Nvidia's $750 Billion Deals Reignite Circular AI Fears
Nvidia's $750B in Deals Reignite Circular AI Fears
Nvidia is finalizing a fresh wave of AI deals exceeding $750 billion, including a massive partnership with SK Group and financing support for OpenAI. These accelerating investments have sparked concerns among skeptics that the chipmaker is artificially inflating demand and valuations across the industry through circular financing structures.
Nvidia Corp. is working on a fresh round of AI deals worth more than $750 billion, accelerating investments that skeptics have warned are artificially inflating demand and valuations across the industry.
- mhitza
Alternative source https://finance.yahoo.com/technology/ai/articles/nvidia-plan...
> The concern is familiar: NVIDIA money funds customers who then buy NVIDIA chips.
- randyrand
Circular is a dumb way to describe it IMO, because it's not like both parties end up in the same place.
Nvidia is making trades for people to buy their GPUs.
Sometimes companies are trading stock for GPUs, sometimes money, other times something else.
In summary, Nvidia is selling GPUs.
- gla67890543
OPEN AI is living true to their name and foundation principles. Non profit and NO PROFIT, lol.
- jdalgetty
At what point do I start taking money out of my VTI holdings and parking it in cash - there is no way the market keeps going up.
- keeda
Nvidia had a free cash flow last quarter of $48.5 billion, a 36% quarter-over-quarter increase. $750B does not seem that huge in comparison. (Yes, the gravy train could theoretically stop anytime, but that still seems like a large but localized unwind rather than a wider economic crash.)
If you were NVDA and had that much cash on hand and wanted to grow your business, where would you put it?