By TOI Tech Desk
Publication Date: 2026-01-27 06:09:00
Nvidia CEO Jensen Huang has forcefully rejected suggestions that the latest $2 billion investment made by the company in cloud provider CoreWeave is part of a trend of ‘circular financing’ between AI chipmakers and tech firms. As reported by Bloomberg News, Huang called the criticism ‘ridiculous’ and insisted that Nvidia’s investments represent confidence in ‘generational companies’ rather than financial engineering. “These are generational companies and the investments that we make is confidence in them,” Huang said. “But it’s a small percentage of the amount of money that they ultimately have to go raise, and so the idea that it is circular is completely ridiculous.”
CoreWeave expansion and AI factories
The latest deal made by Nvidia expands company’s previous stake in CoreWeave, with funds earmarked for land, power, and infrastructure to build AI factories. These facilities will be powered by Nvidia’s chips reinforcing the company’s central role in the AI ecosystem. Huang stressed on the fact that contributions made by Nvidia whether to CoreWeave, OpenAI, Anthropic, or Elon Musk’s xAI are only a fraction of the massive capital these firms must raise. He noted that OpenAI has committed to spend $1.4 trillion over the next eight years, largely on data centers.On…
