Nvidia's self-funded AI loop

AI Investment Strategy - Nvidia is actively investing in AI startups and looking for more opportunities [1] - The company plans to invest $2 billion in Elon Musk's xAI as part of a $20 billion funding round [2] - Nvidia has committed $100 billion to OpenAI and holds a 7% stake in CoreWeave [3] - Nvidia has amassed over $100 billion in exposure across the entire AI ecosystem [4] Financial and Strategic Positioning - Nvidia is becoming the AI industry's preferred lender [2] - Nvidia's CEO Jensen Huang expressed regret for not investing more in AI [3] - Nvidia's investments involve conflicting roles: supplier, equity investor, financier, and customer [4][5] - Nvidia purchases roughly $6.3 billion in cloud services from CoreWeave [3][5] Business Model and Risk - The deals introduce chip-backed debt asset-backed securities, where the collateral is depreciating GPU compute capacity [5] - There are questions about whether Nvidia is using its cash to prop up demand for its own products [6]