NVIDIA Allegedly Engineered Scarcity By Funding AI Startups To Buy Its GPUs
Following the departure of now-former NVIDIA CEO, Jensen Huang, a new report has emerged alleging that NVIDIA artificially inflated the ongoing GPU and memory shortage by investing in AI startups that would go on to buy NVIDIA GPUs and build data centers. The reason behind this was to maintain the perception of ongoing high demand and to move an oversupply of semiconductors from TSMC.
»to diagnose a ballooning problem: Nvidia was in talks to provide billions of dollars of guarantees to companies that couldn’t afford its chips. That included deals led by Huang’s son-in-law, Nico Caprez, who had been offering upstart cloud providers and data-center developers financing«
https://www.wsj.com/tech/jensen-huang-colette-kress-nvidia-ceo-eb289097
wsj.com