NVIDIA Pursues $750 Billion in New AI Deals Despite Financing Scrutiny - Yahoo Finance

What the report says

Yahoo Finance, carrying a GuruFocus report, says NVIDIA is pursuing more than $750 billion in new and possible artificial intelligence infrastructure deals, expanding its role beyond chip supplier into financing and strategic partnerships. The report centers on a newly announced partnership with South Korea’s SK Group and separate discussions tied to OpenAI’s future computing needs, while noting investor concern that NVIDIA may be helping fund projects that also buy its processors.

Under the SK Group agreement, the companies plan AI data centers on the Korean Peninsula totaling more than 2 gigawatts of power capacity. Yahoo reported that the first “AI factory,” to be built by SK Telecom, is expected next year. NVIDIA also plans to work with SK Hynix, SK Group’s memory-chip unit, on future high-bandwidth memory products, a key component for AI systems amid tight supply. Separately, NVIDIA agreed to invest $1 billion in Naver to support an AI data center project with Brookfield, with the facility expected to use NVIDIA hardware.

The report also says NVIDIA is in preliminary talks around OpenAI-related financing for a proposed Ohio data center hub being developed by a SoftBank subsidiary. Possible arrangements include a guarantee of up to $250 billion to support OpenAI leasing capacity and separate financing of about $350 billion for OpenAI purchases of NVIDIA chips, though the talks could change or fall apart.

The developments matter because they could reinforce demand for NVIDIA’s AI processors while increasing scrutiny of the company’s financial exposure to its own customer ecosystem. Yahoo reported NVIDIA shares fell Monday, and CEO Jensen Huang has rejected criticism that the deals create circular demand.