Wall Street Is Obsessing Over Nvidia's $105 Billion Circular Financing Structure With OpenAI. Here's the More Important Deal No One Is Talking About.

Nvidia is pledging up to $105 billion in residual value guarantees to finance OpenAI's Ohio data center project, which Wall Street views skeptically as a circular arrangement where Nvidia finances infrastructure to secure GPU orders. However, the article argues that Nvidia's reported $12.9 billion acquisition of Hugging Face—an open-source AI model platform—is the more strategically important deal, as it positions Nvidia to own the marketplace determining which chips get ordered across the AI ecosystem.