{
  "id": 17304754,
  "title": "Nvidia is becoming the bank of the AI boom — could it also be fuelling a bubble?",
  "url": "https://urgent.news/2026/10/30/nvidia-is-becoming-the-bank-of-the-ai-boom-could-it-also-be-fuelling",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-30T23:00:00.000Z",
  "source": {
    "name": "Malay Mail",
    "slug": "malay-mail-malaymail",
    "url": "https://www.malaymail.com/news/money/2026/10/31/nvidia-is-becoming-the-bank-of-the-ai-boom-could-it-also-be-fuelling-a-bubble/241246"
  },
  "original_language": "en",
  "account": "Nvidia, the leading chipmaker, has become the \"central bank\" of the artificial intelligence (AI) boom, according to analysts. The company has invested heavily in various AI developers, neocloud firms, and data centers, amassing billions of dollars in stakes, loans, and guarantees. This has helped sustain demand for Nvidia's processors, which are crucial components of AI technology. However, some Wall Street critics are questioning whether Nvidia's investments could be fueling an AI bubble.\n\nNvidia's portfolio includes significant stakes in AI developers like OpenAI, Anthropic, and Elon Musk's xAI (now part of SpaceX). The company has also invested in companies like CoreWeave and Nebius, which rent out computing power built on Nvidia chips. Beyond the US, Nvidia has backed AI developers in Europe and Asia, such as French firm Mistral and British startup Wayve. The company has even offered financial backing, acting as a last-resort customer for CoreWeave and guaranteeing up to $105 billion linked to an OpenAI data center.\n\nExperts argue that Nvidia's massive profits leave few better options than investing back into infrastructure tied to its equipment. MIT Sloan School of Management professor Michael Cusumano says this approach is smart, as running its own data centers would put Nvidia in competition with its biggest customers and potentially trigger antitrust issues. D.A. Davidson's Gil Luria adds that Nvidia identifies underinvested parts of the AI ecosystem and injects money to fill the gaps, effectively giving these companies more time to succeed.\n\nHowever, the investments have raised concerns about potential \"circular\" financing reminiscent of the dot-com era. Critics worry that the close relationships between Nvidia and its clients could make it difficult to assess sustainable demand. Meanwhile, the concentration of revenue from two major customers (22% and 14% respectively) and the dependence on limited chip supply are viewed as significant risks. If AI demand disappoints, it could lead to a domino effect affecting chipmakers, data-center builders, and financiers alike.",
  "summary": "NEW YORK, Oct 31 — Nvidia’s US$3 billion (RM12 billion) investment in Meta’s share sale, announced Tue...",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}