Nvidia’s $750 billion deals revive fear of AI circular financing

Bloomberg: While critics have for months warned of the circular nature of such agreements — the companies Nvidia finances and takes stakes in typically buy or use its chips — the pace of the deals is only quickening. The risk with these transactions is they may create skewed incentives for business across a plethora of industries, spur bad decision-making and magnify losses if demand for AI fails to match lofty expectations. Nvidia is also in discussions to finance $350 billion of OpenAI’s purchases of its chips for the US project, according to a person familiar with the matter…