Cuban Warns Nvidia-Funded AI Companies Face Slowdown Risk

Nvidia's significant role in financing AI companies has drawn comparisons to the dot-com era. Mark Cuban, an investor and owner of the NBA's Dallas Mavericks, described Nvidia as 'funding everyone and anyone'.

Cuban was referring to Nvidia's investments in various AI-related companies. As of the first quarter of fiscal 2027 (ending April 26, 2026), Nvidia had private investments worth $42.3 billion and contingent investment commitments totaling $27 billion.

The companies receiving Nvidia's funding include OpenAI, Anthropic, CoreWeave, Nebius Group, Intel, Synopsys, Nokia, and Coherent. Some of these deals may benefit both parties, as the recipient company could use the funds to purchase more Nvidia technology.

However, not all companies funded by Nvidia are in a stable financial position. Cloud operators like CoreWeave and Nebius Group have significant gaps between their revenue and capital expenditures. This raises concerns about whether these companies can eventually fund their expansion with cash from their own businesses.