NVIDIA criticized over circular financing, CFO Colette Kress defends investments
NVIDIA is catching heat for investing in AI companies that use its own chips, a move some call "circular financing" and say could artificially boost demand.
Critics worry this could mess with the economy, but NVIDIA's CFO Colette Kress says these investments help grow the AI world and bring in strong returns with low risk.
NVIDIA announces $500B AI infrastructure buildout
Recently, NVIDIA pledged to help provide OpenAI a guarantee of up to $105 billion for a data center in Ohio (which uses NVIDIA chips), and announced a huge $500 billion AI infrastructure buildout with Wall Street partners, though not all deals are locked in.
A past commitment didn't pan out, raising eyebrows about their strategy.
Plus, five customers accounted for 70% of NVIDIA's accounts receivables, some facing money troubles, which adds another layer of risk.
Still, with $96.2 billion in revenue last quarter and a bold 70% revenue increase forecast for next fiscal year, NVIDIA seems confident it's on the right track.