Jensen Huang says it's 'ridiculous' to say Nvidia's $2 billion investment in CoreWeave is another circular deal (www.businessinsider.com)

Nvidia CEO Jensen Huang firmly rejected claims that the company's recent $2 billion investment in CoreWeave constitutes a circular financing deal. Addressing concerns from investors about potential AI bubble dynamics where chipmakers invest in customer companies, Huang emphasized that these investments reflect genuine confidence in generational technologies rather than a mere recycling of funds. The investment will help CoreWeave procure land and power for new AI factories, which will utilize Nvidia's chips, highlighting a strategic partnership focused on advancing AI infrastructure. This announcement is significant for the AI/ML community as it underscores Nvidia's commitment to supporting the expansion of AI capabilities, despite scrutiny over its financial practices. Huang noted that the investment represents only a small fraction of the large capital requirements needed by companies like OpenAI—projected to invest around $1.4 trillion over the next eight years. By reinforcing its role in financing the foundational elements of AI development, Nvidia aims to alleviate investor concerns while solidifying its position in a rapidly evolving market.