NVIDIA is facing fresh scrutiny over reports that it helped finance AI startups and data center operators, allowing them to continue purchasing its expensive GPUs. The arrangements reportedly came as the chipmaker faced concerns about its massive supply commitments and whether customers could absorb all the hardware being produced.
According to a new report from The Wall Street Journal, former NVIDIA CEO Jensen Huang pushed for aggressive financing deals to support AI companies, while CFO Colette Kress questioned the financial risks involved.
The revelations have also sparked debate over whether NVIDIA’s strategy helped maintain demand for its GPUs instead of allowing prices to fall.
In Brief
- NVIDIA reportedly offered financing and guarantees to AI startups and data center companies purchasing its hardware.
- Jensen Huang was concerned about enormous chip and memory supply commitments as major customers explored alternative processors.
- Colette Kress challenged the financial arrangements and helped reduce a proposed $250 billion OpenAI financing guarantee.
- Claims that NVIDIA deliberately kept consumer GPU prices high remain unproven.
NVIDIA Reportedly Helped AI Companies Buy Its Own GPUs
According to The Wall Street Journal, NVIDIA was considering billions of dollars in financial guarantees for smaller cloud providers and data center developers.
These arrangements could help companies secure financing to build AI infrastructure using NVIDIA hardware, potentially creating additional customers for the chipmaker.
However, there was a growing concern inside NVIDIA.
Major cloud companies were increasingly exploring custom AI processors to reduce their dependence on NVIDIA.
Meanwhile, Huang reportedly worried about the enormous volume of chip wafers and memory NVIDIA had already committed to purchasing from suppliers.
Supporting smaller AI infrastructure companies offered another potential market for that hardware.
NVIDIA CFO Challenged a $250 Billion OpenAI Financing Plan
The report also revealed disagreements between Huang and Colette Kress over the risks associated with these financing arrangements.
One particularly significant deal involved a proposed $250 billion financial backstop supporting an OpenAI data center project in Ohio.
Kress reportedly challenged the size and risk of the commitment, helping reduce the proposed guarantee.
According to NVIDIA’s August 17 SEC filing, the final initial agreement capped its contingent guarantee obligations at $105 billion, covering approximately 4.25 gigawatts of data center capacity.
Importantly, this was financial support for lease obligations, not a direct $105 billion cash investment into OpenAI.
Did NVIDIA Artificially Keep GPU Prices High?
The reports have raised questions about whether NVIDIA’s financing strategy helped support demand and maintain high GPU prices.
Critics argue that helping customers finance purchases could reduce the pressure to lower prices when supply exceeds immediate demand.
However, there is currently no verified evidence that NVIDIA deliberately manufactured GPU shortages or that these arrangements directly increased consumer graphics card prices.
NVIDIA has defended its broader financing strategy as a way to expand AI infrastructure and support future demand.
The controversy comes shortly after Jensen Huang resigned as NVIDIA CEO in November 2026, with Colette Kress taking over as interim CEO.
With NVIDIA’s financing arrangements now attracting additional scrutiny, investors will be watching how the company’s new leadership handles its AI investments, supply commitments, and future GPU demand.
