Full Breakdown
Nvidia’s $750 Billion AI Deal Wave Stokes Circular-Financing Fears
7/28/2026, 8:29:08 PM
Core Event: Massive AI-Infrastructure Deals
Nvidia Corp. is negotiating AI-infrastructure agreements worth over $750 billion. The centerpiece is a partnership with South Korea’s SK Group that will generate more than $500 billion in joint business, including construction of over 2 GW of AI data-center capacity on the Korean Peninsula. Nvidia is also discussing a $250 billion payment guarantee for OpenAI’s planned 10-GW data-center campus in Ohio and up to $350 billion of financing for OpenAI’s chip purchases at that site. Additional commitments include a $5 billion investment in Safe Superintelligence Inc., a $1 billion stake in Naver Corp.’s Korean AI data centre, and other equity and financing deals that have pushed announced AI-related transactions to more than $540 billion this year.
Background & Context
The rapid expansion of AI compute has prompted chipmakers to adopt “circular financing” structures: a chipmaker invests in or guarantees financing for a customer, and that customer then uses the funds to purchase large volumes of the chipmaker’s products. Analysts trace the pattern to Nvidia’s earlier equity stakes in OpenAI ($30 billion in March) and Anthropic ($10 billion last year). Critics liken the current wave to financing practices that amplified the dot-com bubble, arguing that the loop inflates demand and exposes the sector to systemic risk.
Data & Statistics
- SK Group partnership: >$500 billion of joint business, >2 GW of AI data-center power.
- OpenAI Ohio project: up to $250 billion guarantee plus up to $350 billion in chip-purchase financing.
- Other disclosed deals this year: >$540 billion in AI-related financing and equity transactions.
- Nvidia’s share price fell 5 % to $196.51 on Monday, the worst single-day drop since June 5.
- Credit-default-swap spread for Nvidia’s five-year debt rose to 0.82 percentage points, a record intraday jump.
Official Statements & Responses
CEO Jensen Huang defended the SK Group alliance, calling it “the golden ages for Korea” and emphasizing the partner’s semiconductor and industrial strength.
Verbatim Quotes
- “While Nvidia’s investments and partnerships reinforce confidence in long-term AI build-outs, investors remain concerned about circular financing,” — Gary Tan, Allspring Global Investments
- “Nvidia guaranteeing more of OpenAI’s data center debt deepens vendor financing that’s already under scrutiny,” — Billy Leung, Global X Management
Conflicting Reports & Gaps
Sources differ on the total size of Nvidia’s AI-related commitments. Bloomberg cites “more than $750 billion” in deals, while BigGo references a “$600 billion” combined package for the OpenAI Ohio project and a “$540 billion” tally of deals announced this year. The precise breakdown of the $250 billion guarantee versus the $350 billion chip-financing component also varies across reports, leaving the exact exposure unclear.
What’s Next
Negotiations for the OpenAI Ohio guarantee and financing remain in early stages, and the terms could change or collapse. OpenAI has filed confidentially for an initial public offering but has not announced a timeline, adding uncertainty to the repayment outlook for the proposed guarantees. Nvidia’s continued pursuit of large-scale financing arrangements will likely keep circular-financing concerns at the forefront of investor and regulator scrutiny.
