Nvidia's OpenAI Investment Sparks Concerns

Fortune reported on September 28, 2025, that Nvidia’s plan to invest up to $100 billion in OpenAI is drawing scrutiny from analysts over concerns of “circular financing” potentially inflating an artificial intelligence bubble. The investment is intended to help OpenAI build a massive network of data centers equipped with Nvidia’s chips. However, market watchers are questioning if Nvidia is using its own capital to create revenue by funding a customer that, in turn, buys its products.

Analysts from firms including Bernstein Research and Seaport Global Securities have highlighted these concerns, with one calling the deal a sign of “bubble-like behavior.” The practice has generated comparisons to the dot-com boom of the late 1990s, when equipment manufacturers financed smaller companies to purchase their products, which sometimes led to market instability. While Nvidia has reportedly stated the funds are not for direct purchases of its products, the scale of this deal is expected to intensify examination of such investment strategies across the industry.