Nvidia slide rattles chip stocks as OpenAI financing fears re-emerge
TL;DR Summary
Nvidia fell about 5% and dragged the chip sector lower after reports Nvidia could backstop roughly $250 billion in funding for OpenAI to lease computing power—a circular-financing setup where suppliers are major investors in their customers. The move came as Nvidia also announced a collaboration with SK Group on a $500 billion‑plus AI infrastructure initiative, fueling worries about the ROI of AI infrastructure spending as peers like AMD, Micron and SK hynix retreated and investors await earnings from Microsoft, Amazon and Meta.
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