Prof G Markets · Wednesday, August 12, 2026
In response to concerns about circular financing, Nvidia CEO Jensen Huang stated that their initiative is designed to address this by bringing independent institutional capital into the AI infrastructure market. Analyst Jay Goldberg, however, remains skeptical, suggesting Nvidia might be creating demand that wouldn't otherwise exist if AI is viewed as a bubble, and that the company is likely backstopping some portion of the $500 billion to provide lender comfort.
“Is this circular financing? And then he continued on to say, this initiative is designed to address that concern. We are bringing independent long-term institutional capital into the AI infrastructure market.”
“I'm not sure he answers the question. He certainly doesn't say the word no or the words it isn't circular financing.”
“And I think it's perfectly reasonable to provide some form of working capital loan. You lend your, you know, you give them favorable terms, you let the customer pay six months, nine months. That's a form of financing. Or you loan them a little bit of money, it's common practice in a lot of, you know, cap X intensive industries. But this one, I think, catches everyone's eye because it's so big, right? Half a trillion dollars.”
“My strongest suspicion is that Nvidia is backstopping, providing some form of guarantee. Not for the whole 500 billion, but some portion of it.”