Nvidia reported record quarterly revenues of $96.2 billion last week, more than double its figures from a year earlier, reflecting the rapid growth of artificial intelligence (AI) technologies. CEO Jensen Huang credited the surge to AI’s increasing utility, a claim underscored by the company’s announced acquisition of open-source AI platform Hugging Face for $12.9 billion. This move is expected to bolster Nvidia’s dominance in the AI sector, further solidifying its position as a key player in the industry.
Alongside its core chip business, Nvidia has expanded into significant financial investments, earning it the moniker “central bank of AI.” The company has acquired substantial stakes in various AI-related firms, including OpenAI, Anthropic, data center providers Nebius and CoreWeave, the aerospace company SpaceX, and even its chipmaking rival Intel. Nvidia has also extended increasing amounts of credit to its customers to facilitate the purchase of its chips, effectively both supplying hardware and providing the financial backing to secure demand.
These developments have raised concerns among some analysts and market observers about the potential for a financial bubble fueled by Nvidia’s aggressive strategies and the broader surge in AI-related corporate borrowing. Goldman Sachs estimates that nearly $500 billion in AI-related corporate debt has been issued globally so far in 2026, more than double the previous year’s record. Approximately 40% of this borrowing comes from major cloud and data service providers, commonly referred to as “hyper-scalers,” financing a substantial portion of their capital expenditures.
On August 10, Nvidia announced partnerships with major financial institutions—including Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR—to mobilize over $500 billion in funding aimed at expanding AI infrastructure. BlackRock CEO Larry Fink described this initiative as heralding a new era of financial engineering linked to computing power as a financial asset class. While financial engineering can improve risk management, it also carries risks associated with a lack of transparency and the potential for hidden vulnerabilities, as seen in past crises such as the collapse of Long-Term Capital Management, Enron, and the 2008 financial meltdown.
Nvidia’s CFO Colette Kress defended the company’s approach during the recent earnings call, emphasizing that the investments involve limited risk and are fundamentally sound. She also highlighted distinctions between Nvidia’s use of off-balance-sheet financial vehicles and the risky practices behind past corporate scandals.
However, skepticism remains among some market commentators. An influential anonymous newsletter, Groundbreaker, has drawn parallels between the current AI investment boom and the mortgage market’s perilous buildup before the 2008 financial crisis. Groundbreaker noted that many data center leasing arrangements allow delayed payments until computing capacity is delivered, meaning financial stress might only become apparent well into 2027 or 2028. This could serve as a test for the sustainability of current financial commitments and credit structures underpinning AI infrastructure.
If Nvidia’s optimistic outlook holds—that AI’s usefulness will continue to drive growing revenues and justify the associated financial activities—the risks may be manageable. Yet, the scale and complexity of the current AI investment environment suggest close monitoring is warranted to avoid potential fallout should conditions change.