Nvidia Tries to Defend Against Circular Dealmaking Accusations Nvidia, the dominant player in AI computing infrastructure, has become embroiled in controversy over its complex web of deals with frontier AI companies.
These investments create a tangled network of financial dependencies that some experts warn could be skewing demand and concentrating risks.
At the heart of this issue is circular deal making – a phenomenon where Nvidia invests heavily in these startups, which then purchase Nvidia's chips, creating a vicious cycle of cash flowing between the two entities.