Overview

• Nvidia committed up to $100 billion in incremental equity tied to OpenAI deploying at least 10 gigawatts of Nvidia systems, with reporting indicating OpenAI is discussing leasing chips to cut costs by roughly 10% to 15%.
• Citigroup now projects hyperscalers will spend about $490 billion on infrastructure next year and says funding has shifted from cash flows to debt, heightening default and interest‑rate risks.
• Oracle recently sold $18 billion of bonds and, per Citi, may need sharply higher capital spending to support an estimated five‑year, $300 billion OpenAI cloud agreement.
• Skeptics warn the Nvidia–OpenAI arrangement echoes vendor financing seen in past bubbles, with James Anderson, Tom Hancock and Steve Hanke citing circular demand and the risk of missed growth targets.
• Defenders including Doug Clinton and Jason Ware argue the unprecedented compute build justifies novel financing and say hyperscalers’ spending power and enterprise adoption support ongoing demand.