Nvidia’s $24B AI deal blitz has Wall Street asking questions about ‘murky’ circular investments

Core Insights - Nvidia's recent AI partnership with Microsoft and Anthropic highlights the company's aggressive investment strategy, with $23.7 billion invested in 59 deals in 2025 alone [1] - Overall, Nvidia's investments in AI firms from 2020 to 2025 total approximately $53 billion across 170 deals, covering a wide range of AI ecosystem players [2] - The latest deal involves Nvidia and Microsoft committing up to $10 billion and $5 billion respectively to Anthropic, which will also purchase $30 billion in compute capacity from Microsoft Azure [3] Investment Strategy - Nvidia's investment in AI has surged since the launch of ChatGPT in 2022, with the company aiming to solidify its market position as the leading AI chipmaker [5] - The company has made significant investments in notable AI firms, including $6.6 billion in OpenAI and $6 billion in Elon Musk's xAI, with a commitment of up to $100 billion to OpenAI announced in September [4] Market Concerns - Analysts are expressing concerns regarding the nature of Nvidia's investments, particularly in relation to its own customers, amid fears of a potential market bubble driven by AI hype [6] - The investment in OpenAI is described as "very murky," with commitments from OpenAI to utilize substantial compute capacity from Nvidia's systems for future AI model development [7]