By Danny Vena, CPA, The Motley Fool
Publication Date: 2026-10-30 19:49:00
Nvidia (NASDAQ:NVDA) was part of a broad sell-off in the tech sector on Friday, with shares falling as much as 5.3%. As of 2:11 p.m. ET, the stock was still down 5.2%.
Missed AI’s “Act 1”? Act 2 Could Be 14x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »
While the tech downdraft was certainly a contributor, the catalyst that sent the chipmaker lower was the rising cost of artificial intelligence (AI) and the question of who will pay for it all.
Image source: Nvidia.
You have to spend money to make money
Reports emerged today that Nvidia may be considering another financing deal with a customer. The company is reportedly in talks to provide billions of dollars in credit guarantees for an Nscale data center that will ultimately be used by Anthropic, according to Bloomberg, which cited “a person familiar with the matter.”
This marks the latest in a growing string of financing and credit commitments Nvidia has made. For example, reports from earlier this week suggest the company has data center-related commitments and guarantees of $165 billion, according to a report that first appeared in The Information.
That’s not all. Nvidia also holds more than $63 billion in equity stakes in publicly traded companies, according to a recent…