Jensen Huang says it's 'ridiculous' to say Nvidia's $2 billion investment in CoreWeave is another circular deal

Jensen Huang, the CEO of Nvidia, has pushed back against claims suggesting that the company's recent $2 billion investment in CoreWeave is part of a circular financing scheme involving AI chipmakers and tech firms. Describing such assertions as 'ridiculous,' Huang emphasized the significance of Nvidia's commitment to CoreWeave and similar companies. In an interview with Bloomberg News, Huang stated, "These are generational companies — the investments that we make is confidence in them." He clarified that while Nvidia's financial involvement is substantial, it represents only a minor fraction of the total funds these companies need to raise for their ambitious projects. The investment will allow CoreWeave to enhance its capabilities in building AI factories, which will utilize Nvidia's chips. According to a joint statement, the funds will facilitate CoreWeave's acquisition of essential resources such as land and power. Huang also referenced past investments in firms like OpenAI and Anthropic, reiterating that Nvidia's financial contributions are just a small part of the larger infrastructure requirements these companies face. For instance, OpenAI plans to invest approximately $1.4 trillion over the next eight years primarily for data centers. This is not the first time Nvidia has addressed concerns regarding its financial strategies. In a letter to Wall Street analysts, the company reassured them of its solid economic foundation, responding to skepticism from notable investor Michael Burry, famous for his role in 'The Big Short.' Burry has drawn parallels between Nvidia and early Silicon Valley companies before the Dotcom crash, though he clarified that he does not equate Nvidia with Enron but rather sees it as comparable to Cisco.