MoneyAugust 27, 2026via AI News
A quarter of Nvidia’s business next year comes from labs it is financing
Why it matters
Nvidia is financing the very labs buying its chips, creating a circular revenue dependency where ~25% of next year's business comes from companies Nvidia itself is bankrolling. This raises questions about the sustainability of the AI capex model and concentration risk for the chip giant.
Key signals
- Nvidia has invested nearly $50 billion into AI labs it backs
- Commitments lined up for more than $500 billion in future financing
- CFO Colette Kress stated demand from backed labs will contribute ~25% of Nvidia's business next year
- Announcement made August 26 earnings call
- This represents circular financing: Nvidia funds labs → labs buy Nvidia chips → labs generate Nvidia revenue
The hook
$50 billion. That's what Nvidia has put into the AI labs that are now its biggest customers—and it's about to get bigger.
Nvidia has put nearly US$50 billion into the AI labs that buy its chips, and has lined up commitments for more than $500 billion Colette Kress, the company’s chief financial officer, told analysts on August 26 that demand from the labs Nvidia backs with its own balance sheet will contribute toward r…