Nvidia’s $750 Billion Deals Revive Fear of AI Circular Financing - Bloomberg

Created 7/27/2026 at 3:31:36 PM • Edited 7/27/2026 at 3:32:11 PM
https://archive.ph/epMTs

  • Nvidia Corp. is working on AI infrastructure deals potentially worth more than $750 billion, including an artificial intelligence initiative with SK Hynix Inc.'s parent worth more than $500 billion.

  • Nvidia is in discussions to provide a guarantee of as much as $250 billion to help OpenAI lease computing from a US data center project and to finance $350 billion of OpenAI's purchases of its chips.

While critics have for months warned of the circular nature of such agreements — the companies Nvidia finances and takes stakes in typically buy or use its chips — the pace of the deals is only quickening. The risk with these transactions is they may create skewed incentives for business across a plethora of industries, spur bad decision-making and magnify losses if demand for AI fails to match lofty expectations. Nvidia is also in discussions to finance $350 billion of OpenAI’s purchases of its chips for the US project, according to a person familiar with the matter.

Industry peers are opting for similar arrangements. Google, whose AI entries include Gemini, agreed to backstop lease payments at five data center locations for Anthropic PBC, helping the OpenAI rival obtain what amounts to a $35 billion loan.

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