Nvidia is pursuing a new round of large AI infrastructure agreements that, according to Bloomberg estimates cited in reporting, could total as much as $750 billion overall. The moves are intended to secure market position and computing supply chains, but they have reignited criticism about potential market distortion and financial interconnectedness.
South Korea partnership: SK Hynix and a multi‑GW data‑center network
On Friday it was announced that Nvidia will cooperate with the parent company of South Korean chipmaker SK Hynix to build a data‑center network of more than 2 gigawatts capacity on the Korean Peninsula. The project’s power draw is roughly equivalent to the electricity needs of 1.5 million households. The first facility, described as an AI factory to be established by SK Telecom, is expected to open later this year. Elements of the agreement are reported to exceed $500 billion on their own.
Alongside the infrastructure work, Nvidia will support SK Hynix in designing next‑generation, high‑bandwidth memory chips, giving Nvidia more direct access to components that are currently in short supply.
Talks with OpenAI and an Ohio giga‑site
Bloomberg also reports that Nvidia is in discussions to provide up to $250 billion in guarantees to OpenAI, enabling the startup to lease computing capacity for a U.S. data‑center project. That proposal is linked to a reportedly $500 billion, 10‑gigawatt facility in Ohio being developed by a SoftBank subsidiary. Nvidia is also in talks about financing OpenAI’s potential $350 billion chip purchases.
Sources stress these negotiations are at an early stage and some deals could fail to materialize.
Criticism: circular financing, leverage and systemic risk
Analysts and critics cited by Bloomberg warn that such arrangements can create “circular financing”: companies supported or partly owned by Nvidia often end up purchasing or using Nvidia’s own products. Critics argue this can artificially inflate demand and valuations across the sector, create warped incentives, lead to poor business decisions, and amplify losses if actual market demand falls short of elevated expectations.
A central worry is the industry’s rising leverage: many AI companies are taking on substantial debt to finance data‑center and chip projects. Comparable deals have been seen elsewhere in tech — for example, Google reportedly guaranteed lease payments for five data centers on behalf of Anthropic, a move Bloomberg describes as essentially enabling a $35 billion loan to that OpenAI rival.
Such close financial and commercial entanglements increase interdependence among sector participants and, according to the analysis, could constitute a material systemic risk if the market suffers a shock.
Naver investment and market reaction
As part of the South Korea announcements, Nvidia said it would invest $1 billion in Naver to help finance an expansion of a local data center. The news sent Naver shares up more than 8 percent on the Seoul Stock Exchange.
Nvidia’s response and prior deals
Nvidia CEO Jensen Huang emphasized that the company’s investments are not solely about supporting its own business but also deliver acceptable returns. He rejected accusations that the deals represent circular financing.
Bloomberg notes Nvidia has already announced more than $540 billion of similar agreements this year even without the new OpenAI‑related proposals, a fact that feeds the ongoing debate.
This article summarizes Bloomberg reporting and the figures it published; it is not investment advice.
