Nvidia chief executive Jensen Huang rejected concerns that the chipmaker is engaging in circular financing, arguing instead that its investments create outsized returns. “I put in one, and a hundred comes back,” Huang said at Goldman Sachs’ Communacopia + Technology Conference, using the figure rhetorically to illustrate his point.
Nvidia has invested approximately $50 billion in AI labs and agreed to provide financing guarantees of up to $105 billion linked to OpenAI’s Ohio data-centre project, where Nvidia is the exclusive chip supplier. The company also launched a financing platform designed to mobilize roughly $500 billion of third-party capital from institutions including BlackRock, Blackstone, Apollo, and Goldman Sachs.
Huang’s defense came as Nvidia stock fell 2.37% to $218.36, marking its third consecutive decline. The broader Nasdaq also dropped 0.65% amid rising Treasury yields and oil prices, though these factors contributed to the overall market movement.
According to Huang, Nvidia’s investments are not circular “because we put a little bit of money in, and a lot of money comes back.” The logic centers on how Nvidia can invest in AI companies, support financing for their data centers, supply the GPUs inside those facilities, and benefit as customers expand—creating what the company views as a powerful commercial flywheel.
However, investors remain concerned about the independence of AI infrastructure demand. Supplier financing itself is not new—aerospace, telecoms, and industrial companies have long supported customers buying expensive equipment. What distinguishes Nvidia’s approach is the scale and interconnectedness of the AI buildout, where capital flows and demand become increasingly intertwined.
Gary Tan of Allspring Global Investments told the Los Angeles Times that “capital is increasingly being used to fund future AI customers and infrastructure deployments.” This dynamic creates risk if AI spending slows, as highly leveraged cloud operators depend on strong utilization and pricing to service debt and justify new capacity.
Despite these concerns, Goldman Sachs reiterated a Buy rating with a $300 price target, citing AI demand and supply dynamics. Nvidia expects revenue to grow approximately 70% in its next fiscal year. However, analyst Dan Niles has noted that large customers facing scarce supply may over-order chips, complicating how investors interpret actual demand signals.
Key facts
- Nvidia has invested roughly $50 billion in AI labs
- Nvidia agreed to provide up to $105 billion in financing guarantees for OpenAI’s Ohio data-center project
- Nvidia is the exclusive chip supplier for the OpenAI project
- A Nvidia financing platform aims to mobilize approximately $500 billion in third-party capital
- Goldman Sachs maintained a Buy rating with a $300 price target for Nvidia stock
- Nvidia expects approximately 70% revenue growth in its next fiscal year