A chip oversupply may have pushed Nvidia to manufacture its own demand
The AI boom has been widely blamed for GPU prices spinning out of control over the past year. Following Jensen Huang’s resignation from Nvidia, new information suggests that this was the goal of the former CEO’s business strategy, which has long drawn accusations of circular financing.
A recent Wall Street Journal profile of Nvidia interim CEO Colette Kress has shed more light on how Nvidia controversially financed its own customers to drive the AI boom. According to the report, the company pushed for more deals in mid-to-late 2026 to keep its GPU prices high amid an oversupply of TSMC wafers.
Since at least last year, Nvidia has been accused of prolonging the AI boom by supporting the companies that buy its chips. Founder and former CEO Jensen Huang, along with then-CFO Kress, even went so far as to defend the company against comparisons to Enron, which used similar tactics to illegally obscure its debt before its 2001 collapse.
This isn’t new news, We’ve known this for years now and it’s why we know we’ve been in a financial bubble
Wow… 1½ years after the whole internet started commenting on the insanity behind the AI bubble (example) and 10 months after Bloomberg published “A Guide to the Circular Deals Underpinning the AI Boom” the Wall Street Journal reports about “long drawn accusations” with some details? Were they in some kind of coma all that time and are now catching up to reality or do some billionaire’s buddies need a bit extra publicity about it to support their trades? 😂
“Whose bread I eat, his song I sing”
How is this different than what the Daily Show lampooned about a year ago?
Ronny Chieng Investigates the Promises of AI, the Most Expensive Circle Jerk Ever
Does this mean that we’ve now ALL officially been fucked by Jensen Huang?
This news makes me feel cheap, like some sort of cheap chinese spy.
Nope! I was fucked by his cousin since I’ve always been team red. Strangely though, still in the family.
Does this mean that we’ve now ALL officially been fucked by Jensen Huang?
And therfore, the people extrapolating the exponential rate of his extramarital affairs were correct?
Centuries from now, instead of saying .5% of the population can trace their roots back to Gengis Khan, it’ll be Jensen Huang.
Zitron been saying this forever
Nvidia will be required to reimburse customers for the inflated prices and Jensen and those who came up with this scheme will spend years in prison and loose all their wealth right?
It definitively won’t happen if you don’t contact your representatives.
When this is all done, we are gonna have a new term like ‘Ponzi Scheme’ but for all of the bullshit that Nvidia has been pulling.
Dot com finance scheme? Enron scheme? Housing market finance scheme? No we won’t. The difference is that Ponzi did it himself where all these are a multi corporate wink and push. To many people make too much money, naming it makes it harder to reskin and repeat.
Duh
