Morning Briefing: How sustainable are Nvidia's circular deals?
Analysts warn that the deals could distort chip demand. Also: Germany's possible rating loss leaves investors cold and the Bundesbank is eliminating free accounts.
Good morning, dear readers, I don't know how you're doing, but I think the term "circular economy" is something good, because sustainable. Products and raw materials are repaired or recycled. When analysts talk about Nvidia's "circular economic principle", they mean businesses that are not prohibited, but raise many questions. Nvidia's CEO Jensen Huang knows how to mobilize huge sums.
On Monday, the chipmaker announced that it would partner with some of the largest US financial conglomerates to raise $500 billion for the expansion of AI infrastructure. Nvidia plans to secure up to $125 billion of this itself. This mega-deal is part of a multitude of Nvidia's businesses within the AI ecosystem. Like no other CEO, Huang is participating with large sums in customers and suppliers, securing purchase contracts and financing the construction of new data centers.
The financial service Bloomberg put the volume of these deals at over $750 billion. The calculation: whoever takes Nvidia money, buys Nvidia chips. Naveen Chhabra from the analysis firm Forrester calls this: "One hand washes the other."
Translated by urgent.news. Machine-written — may contain errors; check the original before relying on it.
