Nvidia CEO Jensen Huang rejected criticism of the company’s investment strategy, calling claims of “circular financing” around its latest deal “ridiculous.”
Huang was responding to scrutiny over Nvidia’s $2 billion investment in cloud computing firm CoreWeave. Some investors have raised concerns that AI chipmakers are fueling an AI bubble by investing in companies that are also major customers. Huang dismissed that view, saying Nvidia’s investments represent confidence in long-term businesses, not financial recycling.
“These are generational companies,” Huang told Bloomberg News, adding that Nvidia’s investments make up only a small fraction of the capital those firms ultimately need to raise. “The idea that it is circular is — it’s ridiculous.”
Under the deal, Nvidia expanded its stake in CoreWeave by purchasing $2 billion in shares. The funds will support CoreWeave’s expansion, including land, power, and infrastructure to build new AI data centers, which will use Nvidia’s chips.
Huang said similar arrangements with companies like OpenAI, Anthropic, and Elon Musk’s xAI also represent a minor share of their overall funding needs. He pointed out that OpenAI alone plans to spend around $1.4 trillion over the next eight years, largely on data centers.
In a separate interview with CNBC, Huang reiterated that Nvidia’s investments are a “very small percentage” of the total capital required for large-scale AI infrastructure.
The company has pushed back on skepticism before. In November, Nvidia sent a letter to analysts defending its financial strength after investor Michael Burry raised concerns, comparing Nvidia’s situation to Cisco before the dot-com crash. Nvidia said its business is economically sound and its reporting transparent, while Burry has stood by his analysis.