Nvidia's $750 Billion AI Deals Spark Market Panic Over Circular Financing Concerns

Nvidia is facing market panic over alleged 'circular financing' in its massive AI deals with SK Group and OpenAI, which total $750 billion.

The concern is that Nvidia funds customers who then buy its chips, creating a closed loop that may distort demand.

Analysts warn that if AI revenue growth fails to outpace debt expansion, significant risks could emerge.

Nvidia CEO Jensen Huang denies the claims as 'ridiculous', but analysts say the core of financial engineering is solving financial problems through innovative methods, and Nvidia's practice ties customers with funding to drive chip sales.

Well-known short-seller Michael Burry has been expressing concern over these risks for several months.