Nvidia's $750B AI Deals Fuel Circular Fears
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- Nvidia 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.
- A partnership with South Korean conglomerate SK Group unveiled late Friday means the two companies will do more than $500 billion in business with each other, according to Nvidia.
- Nvidia is in talks to backstop as much as $250 billion to help OpenAI lease computing power from a US data center project.
- The potential OpenAI financing would rank among Nvidia's biggest financing deals with a single customer.
- Nvidia is described in the report as "the world's most valuable company," even as circular-financing skepticism grows around its deal pipeline.
Why it matters: The $750 billion figure is built from two distinct commitments — a $500 billion-plus business relationship with SK Group and a potential $250 billion backstop to fund OpenAI's compute lease — and critics argue that pattern of the chipmaker financing or anchoring its own customers' purchases risks pricing AI demand with the same dollars cycling through Nvidia rather than from independent third-party buyers.
