Nvidia CoreWeave Nebius Circular Financing

Nvidia, CoreWeave, and Nebius are locked in a circular financing loop that amplifies the GPU boom. Nvidia sells chips to CoreWeave and Nebius, who then use those chips to offer cloud services—often paying Nvidia back with revenue or equity. This creates a self-reinforcing cycle where Nvidia's hardware sales drive demand for its own cloud partners, and those partners' success justifies further GPU purchases. The arrangement has drawn scrutiny for inflating revenue figures and masking true end-user demand. Based on community signals so far, this financing model is a key driver of the rapid expansion in AI infrastructure, but it also raises questions about sustainability and market distortion.

A detailed analysis on io-fund.com broke down the circular financing loop, sparking discussion on Hacker News about the sustainability of GPU demand and potential market distortions.