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Strategies & Market Trends : World Outlook
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From: Les H10/25/2025 7:40:46 AM
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Kristina Partsinevelos: Nvidia shuts down circular financing worries with investment limits

Nvidia has taken definitive steps to address concerns about circular financing in its operations. According to Piper Sandler, a notable investment firm, the tech giant's investments in entities like OpenAI and emerging neocloud companies are strictly allocated. Funds from Nvidia cannot be used to purchase Nvidia GPUs; instead, they are dedicated to infrastructure elements such as land, power, and employee recruitment, ensuring a clear division between investment and sales activities.

Kristina Partsinevelos: Nvidia shuts down circular financing worries with investment limits

It'd be interesting to see if Nvidia is entering into these agreements with discounts applied in future quarters so their customers can take cash out of these deals to fund operations. That's how Lucent's deals often worked. Nvidia is admitting to directly funding operations when they compensate the client for employee retention. That's why it looks like all these vendor announcements appear to be buying time for OpenAI. It would not surprise me if the data center REITs are also involved in this. Once the data centers are built, OpenAI can sell them to investors like REITs at a considerable profit.
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