Nvidia's $750 billion circular financing loop: How it became banker, supplier and investor - and how big is the risk?
New Delhi, July 29 -- NVIDIA is working on a fresh round of AI deals worth more than $750 billion, strengthening its role as a financer of the infrastructure and companies driving the AI revolution.
From Goldman Sachs to 'Big Short' investor Michael Burry, several experts have warned about the circular nature of these deals, i.e. Nvidia invests in or finances companies and projects that ultimately buy its own chips. They fear that such a pattern could artificially boost demand, making AI demand look stronger than it is. And, the most uncomfortable question right now is: How big a risk does this pose to investors?
Regarding the term 'circular financing,' one clarification is needed, Viram Shah, Founder & CEO, Vested Finance, says. Nvidia...
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