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> Nvidia would pay out nothing to OpenAI if OpenAI turns out to be too poor to pay for capacity. So they are not that exposed to the death of OpenAI specifically.

Nvidia has invested billions in previous rounds of OpenAI raises also. Pretty sure it is not nothing.

Also OpenAI rents from CoreWeave that Nvidia has invested in.

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>Nvidia has invested billions in previous rounds of OpenAI raises also. Pretty sure it is not nothing.

Ok I stand corrected, but the main point is that the "circular" risk more refers to the recent 100B "investment", and that is quite misleading.

> "circular" risk more refers to the recent 100B "investment", and that is quite misleading

No it's not. It refers to a web of companies sending money back and forth. Nvidia investing in OpenAI, OpenAI investing Coreweave and that goes back to Nvidia except recently 10x the scale. Amazon, Broadcom, Intel and many more are now all in on it.

The point is that risks of the circularity cannot be established well if one leg isn't quite dangerous. Nvidia's direct exposure is much more limited than it seems. Additionally in your example, Coreweave is tiny. It's mainly companies like OpenAI that are highly leveraged.

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