Nvidia Corp. is pursuing AI-related deals valued at more than US$750 billion [1], sparking concerns over the stability of the artificial intelligence market.
The scale of these commitments has raised alarms among investors who fear a circular financing loop. This occurs when a supplier provides the capital that its customers then use to purchase the supplier's own products—a cycle that can artificially inflate demand and corporate valuations.
Reports indicate that Nvidia is working on these massive AI deals to secure its market position [2]. Some analysts point to a rumored deal with OpenAI that could reach US$600 billion [4]. These figures suggest a strategy where the chipmaker deeply integrates itself into the financial health of its primary clients.
This concern follows the launch of a revenue-sharing AI cloud model on July 1, 2026 [3]. That program involves 210,000 GPUs [3], creating a flywheel effect where Nvidia acts as both the hardware vendor and the financier for the cloud infrastructure.
Critics argue this model creates a bubble by masking the actual organic demand for GPUs [1]. If the companies receiving the financing cannot generate enough independent revenue to sustain their operations, the inflated valuations of the AI sector could collapse [2].
Nvidia has not commented on the specific financing structures of these deals. However, the company continues to dominate the global AI hardware market from its U.S. operations [1].
“Nvidia is pursuing AI-related deals valued at more than US$750 billion.”
The emergence of circular financing in the AI sector suggests a shift from pure hardware sales to a complex ecosystem of vendor-led financing. If Nvidia is effectively funding its own revenue growth, the market may be overestimating the sustainable demand for AI chips. This creates a systemic risk where the failure of a few heavily financed AI startups could trigger a broader correction in the semiconductor industry.
