"Nvidia shares fell about 1.1 percent on Monday following the reports. Sarah Kunst, managing director at Cleo Capital, told CNBC that the back-and-forth was unusual. "One of the things I did notice about Jensen Huang is that there wasn't a strong 'It will be $100 billion.' It was, 'It will be big. It will be our biggest investment ever.' And so I do think there are some question marks there.""
"Tech critic Ed Zitron has been critical of Nvidia's circular investments for some time, which touch dozens of tech companies, including major players and startups. They are also all Nvidia customers. "NVIDIA seeds companies and gives them the guaranteed contracts necessary to raise debt to buy GPUs from NVIDIA," Zitron wrote on Bluesky last September, "Even though these companies are horribly unprofitable and will eventually die from a lack of any real demand.""
"A Wall Street Journal report on Friday said Nvidia insiders had expressed doubts about the transaction and that Huang had privately criticized what he described as a lack of discipline in OpenAI's business approach. The Journal also reported that Huang had expressed concern about the competition OpenAI faces from Google and Anthropic. Huang called those claims "nonsense.""
Nvidia insiders expressed doubts about a large investment and Huang privately criticized a perceived lack of discipline in OpenAI's business approach; Huang called those claims "nonsense." Nvidia shares fell about 1.1 percent after the controversy. Observers noted unusual public back-and-forth and questioned the scale and framing of the investment. Some commentators described the arrangement as circular, with Nvidia funding companies that then buy Nvidia GPUs. Criticism centers on Nvidia seeding firms and guaranteeing contracts that enable debt-financed GPU purchases. OpenAI explored alternative chip suppliers such as Cerebras and Groq, but Nvidia later struck a $20 billion licensing deal with Groq and hired its founder, ending those talks.
Read at Ars Technica
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