Video | The Trick Behind NVIDIA's "Recycling Financing": Lend Credit to Customers Without Extending the Loan Yourself

EZ Primary Research CEO Ed Zitron, in an interview with CNBC, stated that NVIDIA is playing multiple roles in the AI compute supply chain as a supplier, customer, and financing enabler. He believes that NVIDIA is selling GPUs to companies like CoreWeave and Lambda while also supporting these companies through long-term procurement contracts, investments, and financing to help them expand their compute infrastructure. In the end, the funds provided by NVIDIA flow back into GPU purchases. Rather than a direct loan, NVIDIA is more like "lending out its own credit."

What Zitron is truly concerned about is that this system's demand is highly concentrated on a few AI companies such as OpenAI and Anthropic, which are still burning cash at a large scale and have not proven their profitability. If the upstream AI demand does not materialize as expected, the financing and investment chain formed around compute expansion may face even greater pressure.