Nvidia Pushes Back on Circular Financing Criticism -- WSJ

By Caitlin McCabe

For a while now, the world's most valuable company has been under scrutiny for so-called circular funding arrangements, where it invests in the companies that buy its chips or uses its balance sheet to guarantee their financing.

Nvidia executives offered a full-throated response yesterday: Don't worry.

"We recognize the scale of this support, and we know some will call this circular financing," Nvidia's CFO Colette Kress said yesterday. "We see it differently. The equity returns on our invested capital will be excellent."

CEO Jensen Huang also defended the arrangements in a post-earnings interview with CNBC:

"There are several companies, these frontier AI labs, that are once-in-a-generation companies, and we want to be investors in them. We want to support them. We want to be a partner to them," he said. "We would love for them to build their ecosystem on top of us, of course, and then scale up their business along with us. And so, the opportunity to invest in them in the beginning was a great opportunity. And frankly, I just wish I invested more."

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August 27, 2026 07:26 ET (11:26 GMT)