Jensen Huang Rejects 'Circular Financing' Claims Amid Nvidia's AI Investments
Technology
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Moneycontrol•28-01-2026, 22:11
Jensen Huang Rejects 'Circular Financing' Claims Amid Nvidia's AI Investments
- •Nvidia CEO Jensen Huang strongly refutes 'circular financing' allegations regarding the company's investments in AI infrastructure firms.
- •Huang dismisses the idea as 'ridiculous,' stating Nvidia's financial backing reflects long-term confidence in transformative AI businesses, not artificial demand creation.
- •The comments follow Nvidia's recent $2 billion investment in CoreWeave, an AI cloud provider, which critics suggest creates a self-reinforcing loop for Nvidia's GPUs.
- •Huang argues Nvidia's investments are a small fraction of the total capital needed by these AI companies, emphasizing the scale of funding required for modern AI infrastructure.
- •Nvidia's strategy aims to support the growth of the AI ecosystem, driving demand for accelerated computing, rather than controlling these businesses.
Why It Matters: Jensen Huang defends Nvidia's AI investments, calling 'circular financing' claims ridiculous and emphasizing ecosystem growth.
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