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Nvidia is quietly orchestrating a massive $750 billion financial loop and Wall Street is finally realizing the entire AI boom might just be a giant house of cards. To get into what is going on, Bloomberg just exposed that Nvidia is sitting at the center of a massive circular financing ring. Basically, Nvidia is investing billions of dollars into smaller AI cloud startups. But there is a massive catch. Those startups are turning around and using that exact main venture capital money to buy Nvidia's wildly expensive AI chips. Nvidia then gets to report those chip sales as organic revenue, which pumps up their stock price while the startups get to pretend they have a booming computing business. Silicon Valley is literally just passing the same dollar bill back and forth in a circle to convince the rest of the world that artificial intelligence is a real economy. If one of these startups defaults, the entire $750 billion illusion is going to collapse overnight.
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