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Nvidia CEO Jensen Huang’s foundation just purchased around $108 million worth of AI compute from CoreWeave and donated it to universities and nonprofit research labs. | |
On the surface, this is a huge win for researchers struggling to access expensive GPU infrastructure for AI and scientific projects. But honestly, the more interesting part is what this says about the current AI race. | |
· In January 2026, Nvidia invested $2 billion in CoreWeave, becoming its second-largest shareholder. · CoreWeave heavily depends on Nvidia GPUs · Nvidia has a $6.3 billion deal with CoreWeave to purchase any cloud capacity that CoreWeave fails to sell to other customers. · AI demand is growing faster than compute supply · The AI race is increasingly becoming an infrastructure war | |
Critics refer to this as "circular financing", where a company invests in or buys from its own customers to bolster their balance sheets, which in turn allows those customers to buy more of the company's original product (in this case, GPUs). |
