To combat accounting allegations from investors like Michael Burry, NVIDIA's investor relations team sent a private 7-page memo to Wall Street analysts. This direct refutation, explicitly stating "NVIDIA says it's not Enron," reveals a high level of concern over market narratives, even for a financially dominant company.

The $100B NVIDIA deal was more than equity; it was a strategic partnership enabling OpenAI to leverage NVIDIA’s financial strength to raise the massive debt needed for its infrastructure build-out. With the deal faltering, OpenAI's ability to fund its own hardware expansion independently is now in question.

Nvidia's earnings call revealed its multi-billion dollar investment opportunities in OpenAI and Anthropic are non-binding letters of intent. This suggests the supposed "round-tripping" of capital in the AI ecosystem is built on optional, handshake-like deals, not guaranteed commitments, adding a layer of hidden risk.

OpenAI's publicly stated plan to spend $1.4 trillion on AI infrastructure is likely a strategic "psyop" or psychological operation. By announcing an unbelievably large number, they aim to discourage competitors like xAI, Microsoft, or Apple from even trying to compete, framing the capital required as insurmountable.

NVIDIA funds OpenAI's compute purchases (of NVIDIA chips) with an equity investment. This effectively gives OpenAI a discount without lowering market prices, while NVIDIA gains equity in a key customer and locks in massive sales.

The high-stakes competition for AI dominance is so intense that investigative journalism can trigger immediate, massive corporate action. A report in The Information about OpenAI exploring Google's TPUs directly prompted NVIDIA's CEO to call OpenAI's CEO and strike a major investment deal to secure the business.

Companies like NVIDIA invest billions in AI startups (e.g., OpenAI) with the understanding the money will be spent on their chips. This "round tripping" creates massive, artificial market cap growth but is incredibly fragile and reminiscent of the dot-com bubble's accounting tricks.

When asked about AI's potential dangers, NVIDIA's CEO consistently reacts with aggressive dismissal. This disproportionate emotional response suggests not just strategic evasion but a deep, personal fear or discomfort with the technology's implications, a stark contrast to his otherwise humble public persona.

Jensen Huang counters accusations of inflating revenue by investing in customers. He clarifies the investment in OpenAI is a separate, opportunistic financial bet, while chip sales are driven by market demand and funded independently by OpenAI's own capital raising—not by NVIDIA's investment.