Don't call it circular financing. Nvidia doesn't see its efforts to prop up upstarts and bolster key AI players as questionable financial engineering.
Yes, it's true that the beneficiaries of Nvidia's muscular backstops and investments are also its customers. But Nvidia doesn't see the scale of its support as something worthy of suspicion. That's because, the company says, it's building an ecosystem with too many scenarios for Nvidia to win.
A key question from critics of Nvidia concerns the demand for AI components, tools, and infrastructure: Would the growth around AI and the confident projections of future success be attainable without Nvidia's heavy hand?
CFO Colette Kress addressed the criticism head-on during the company's Q2 earnings call on Wednesday.
"We know some will call this circular financing. We see it differently. We are going through a major computing platform shift, the creation of one of the most important technologies in human history, and these are once-in-a-generation companies. Their technology leadership is proven, and their customer traction and usage are skyrocketing."

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