#Nvidia - The Honeypot That Might End the #AI Boom - The scandal comes at an awkward time for Nvidia. The company is at ...

#Nvidia - The Honeypot That Might End the #AI Boom - The scandal comes at an awkward time for Nvidia. The company is at the center of the AI boom: AI models almost all run on Nvidia chips inside the data centers. The company has also carried out a tremendous quantity of “circular financing,” using its profits to prop up its sales of graphics processing unit (GPUs), the computer chips used in AI, in various ways. It invested tens of billions in the AI labs themselves (like Anthropic and OpenAI), stoking demand for compute. It has invested billions more in data center companies like CoreWeave, to which Nvidia also committed $6.3 billion to buy any unsold compute capacity through 2032. These “neocloud” companies look to be the weak spot of the AI boom. They have been borrowing heavily, at high interest rates, to build out data centers whose capacity can be rented out. #ArtificialIntelligence #JensenHuang #tech #AIBubble #finance #stocks #investing https://prospect.org/2026/11/10/honeypot-...