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Nvidia investment in OpenAI spotlights concerns over circular financing
The investor letter cited examples including Nvidia chip leasing tied to its OpenAI investment and use of special purpose vehicles to route AI hardware purchases back to the same suppliers.
Andvari Associates, an investment management firm, raised concerns about circular financing risks in the AI buildout, pointing to Nvidia’s late 2025 investment in OpenAI as an example of funds being used for chip leasing, according to its investor communications covered by Yahoo Finance. The letter also described how companies including Nvidia and Anthropic have invested into special purpose vehicles, or SPVs, which then use that capital to buy hardware from the same makers, adding to worries that the AI investment cycle could be driven by financial structuring rather than end-demand cash flows. Andvari said the AI sector is facing a growing valuation-to-cash-flow disconnect amid “extreme hype,” and that the investment phase may cool in the next one to three years even as demand for AI infrastructure remains high. The firm noted it has reduced sector exposure, aiming to protect and grow assets through disciplined investment in more stable industries during the AI boom.
Yahoo Finance also referenced Nvidia’s market metrics at the time of the write-up, including a $217.55 share close on August 28, 2026, and a $5.25 trillion market capitalization, alongside noted one-month and 52-week stock performance.