Huang Defends Nvidia's $500 Billion AI Financing Push as Revenue Jumps 117%
Updated
Updated · CNBC · Aug 27
Huang Defends Nvidia's $500 Billion AI Financing Push as Revenue Jumps 117%
3 articles · Updated · CNBC · Aug 27
Summary
Jensen Huang said Nvidia’s financing of AI startups and data centers reflects the sector’s huge capital needs, rejecting claims the deals amount to “circular financing” that props up chip sales.
Nvidia has expanded from equity stakes in companies such as OpenAI and Anthropic to larger backstops, including support for a $105 billion Ohio compute campus and a partnership to arrange up to $500 billion for data centers.
Huang argued frontier AI labs need tens of billions of dollars but lack investment-grade credit, making Nvidia a useful funding partner while still benefiting from their growth on its platform.
He also said Nvidia’s risk is limited because computing infrastructure can be redeployed across customers, and pointed to strong demand after quarterly revenue reached $96.2 billion and data-center sales rose 117% to $89 billion.
The defense comes as investors scrutinize AI spending more closely despite Nvidia forecasting about 70% revenue growth for fiscal 2028; the stock rose about 4% after results.