Nvidia's $750 billion AI deals spark AI bubble fears as OpenAI financing raises circular financing concerns

Nvidia is working on AI infrastructure deals worth over $750 billion, including partnerships with SK Group and OpenAI.

Nvidia's deal with SK Group is valued at more than $500 billion for AI partnership with the parent company of SK Hynix.

Nvidia may guarantee up to $250 billion to help OpenAI lease computing power from a US data centre project, plus $350 billion for OpenAI's chip purchases.

Critics warn that Nvidia's investments create circular financing, where funded companies use the money to buy Nvidia's chips, potentially inflating demand and valuations.

Gary Tan of Allspring Global Investments noted investor concern that capital is increasingly funding future AI customers and infrastructure deployments.