By James Titcomb
Publication Date: 2026-08-11 08:52:00
Nvidia’s chief executive has defended a $500bn (£370bn) AI financing plan after the move unnerved investors.
Jensen Huang denied that a framework agreed with several Wall Street giants to finance data centres was “circular” financing, amid fears that the practice is inflating an AI bubble.
Nvidia announced agreements with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR under which the investment firms would finance more than $500bn in AI infrastructure such as data centres.
But shares fell by almost 2.8pc on Monday after the agreement was announced.
Under the arrangement, the companies will provide financing to companies to build AI data centres. Nvidia will be the ultimate beneficiary of much of this spending, since it supplies the AI chips and other equipment that go into data centres.
Nvidia, the world’s most valuable company, has been accused of pumping up an AI bubble by investing in AI companies such as OpenAI and Anthropic that ultimately pay for its chips.
These so-called circular deals were a common feature of the dotcom bubble. However, Mr Huang said the latest memorandum of understanding did not constitute circular financing.
“This initiative is designed to address that concern. We are bringing independent,…
