NVIDIA Faces Growing 'Circular Deal' Controversy Over OpenAI·SK Partnership
We examine the hidden structure behind the NVIDIA circular deal controversy and the OpenAI·SK partnership Check the truth behind AI infrastructure investment and demand, and look at the industry's risks
Nvidia, which is leading the global artificial intelligence industry, is pushing ahead with largescale cooperation with OpenAI and SK Group, reigniting controversy over socalled “circular transactions.” According to the article, Nvidia is expanding a structure in which it provides investment or financial support to customers that buy its chips.
Bloomberg and The Wall Street Journal reported that Nvidia is reviewing financial guarantees and funding measures to help OpenAI lease data centers and purchase chips. Its cooperation with SK Group is also structured so that Nvidia buys memory semiconductors while SK purchases Nvidia chips, raising concerns in the industry that demand and corporate value could be artificially inflated.
The article also noted that other big tech and AI companies, including Meta, Microsoft, and CoreWeave, are using similar structures in the process of data center investment and financing. Experts warned that for AI infrastructure investment to continue, actual sales and demand must follow, and that otherwise the financial burden across the industry could grow.