GoKawiilWSJ report: Nvidia used circular financing deals to sustain high GPU prices
A Wall Street Journal profile of Nvidia interim CEO Colette Kress reports that the company pushed additional financing deals with cloud providers and AI firms in mid-to-late 2026 to absorb a surplus of TSMC wafers and keep chip prices elevated. The report says Kress privately raised concerns about the scale of these arrangements, but Nvidia proceeded until summer 2026, when it began scaling back some deals, including a $250 billion backstop tied to OpenAI's data center plans.
GoKawiil's interpretation of the reporting above, not reported fact.
The report adds detail to long-standing accusations that Nvidia's financing of its own customers—comparisons to Enron's debt-obscuring tactics have been raised—helped prolong inflated GPU and component prices across the industry. If accurate, the internal tension described between Kress and former CEO Jensen Huang suggests the company itself questioned whether its strategy had gone too far, which could shape how regulators or investors scrutinize vendor financing in the AI sector going forward.
- WSJ reports Nvidia pushed financing deals in 2026 partly to absorb excess TSMC wafer supply.
- Interim CEO Colette Kress reportedly raised internal concerns before Nvidia pulled back on some deals.
- A $250 billion backstop tied to OpenAI's data center was among the financing arrangements scaled down.
Source: techspot.com — Daniel Sims, 2026-11-14
Published there as: “Nvidia deliberately kept GPU prices high through circular financing deals”
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