NVIDIA's $750B AI deals including SK Group spark bubble concerns
NVIDIA is making huge moves in the AI world, with deals totaling more than $750 billion, including a partnership worth more than $500 billion with South Korea's SK Group for memory chips and supercomputers.
Talks with OpenAI could add another $600 billion for chip buys and a massive Ohio data center.
All this has people wondering if we're heading for an AI bubble.
Investors worry about NVIDIA circular financing
Some experts think NVIDIA's strategy (helping customers finance purchases that circle back to its own products) could artificially boost demand and make the company vulnerable if AI growth slows down.
Gary Tan, portfolio manager at Allspring Global Investments, said investors remain concerned about 'circular financing,' but CEO Jensen Huang insists these investments are meant to support the broader AI ecosystem.
Anthropic secures $35B loan with Google
Anthropic recently secured a $35 billion loan with Google's support, showing that big tech is backing AI startups in similar ways.
Despite concerns about inflated demand, NVIDIA has already signed over $540 billion in AI-related deals this year alone, not counting ongoing talks with OpenAI.