Nvidia Invests Record $23.7 Billion in AI Firms as Wall Street Questions 'Circular' Customer Funding Strategy
Summary
Nvidia pours a record $23.7 billion into AI companies through 59 deals in 2025, but Wall Street analysts raise concerns about the chip giant's controversial practice of investing in the same firms that buy its processors, questioning whether this circular funding strategy artificially inflates demand for its own products.
Key Points
- Nvidia invests $23.7 billion in AI firms through 59 deals in 2025, surpassing its entire 2024 investment total of $22.8 billion across 54 deals
- Wall Street analysts question the 'murky' nature of Nvidia's circular investments in its own customers, including partnerships with OpenAI, Anthropic, and xAI that involve chip purchase commitments
- Critics suggest these investments may artificially inflate AI demand for Nvidia's chips, though CEO Jensen Huang defends them as strategic bets on future multitrillion-dollar companies