Nvidia lent billions of dollars to OpenAI, which used the funds to purchase Nvidia chips, creating a financial loop where the company is simultaneously investor and supplier. In September 2025, Nvidia pledged to invest up to $100 billion in OpenAI, then committed in August 2026 to guarantee up to $105 billion for the infrastructure of OpenAI’s future site in Ohio, a project led by SB Energy and leased to Sam Altman’s company. Other tech giants like Amazon, Microsoft and Oracle have adopted the same circular financing mechanics with OpenAI. This strategy has raised growing concerns, with some analysts comparing it to a Ponzi scheme, as credit default swaps on Nvidia’s five-year debt surged by nearly 90% in one year. Nvidia has also acquired Hugging Face for $12.9 billion, diversifying its investments beyond its main client.
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