I also pointed out the circular economics in Nvidia’s relationship with CoreWeave (first brought to light by people like Samantha LaDuc and others) — Nvidia investing in a startup that depended on its chips, which then used those very same chips as collateral to borrow money… to buy more Nvidia chips.
My line at the time was: “Nvidia invested in CoreWeave, which is reliant on Nvidia products, and now those Nvidia products are being used as collateral to buy… what is most likely more Nvidia products. Fantastic.”
Fast forward to July 2025, and I then wrote One Tech Stock I’m Hell Bent on Avoiding — again about CoreWeave. CoreWeave’s IPO was so weak there was no real demand at $40. Nvidia had to backstop it with a $250 million “rescue” order just to get it out the door. And then, a few months later, CoreWeave is trading at $120.
Am I really supposed to believe investor demand materialized out of nowhere in that short a time? What rational explanation is there for this? And, more importantly, does anyone even give a fuck?
Now, add this past week’s leasing story to that backdrop. It looks like the same playbook: potentially circular economics dressed up as innovation. First with CoreWeave, now with OpenAI.
And the entanglements don’t stop there. Nvidia has been spraying money around the sector. Nvidia has combined strategic investments in partners such as OpenAI, Intel, and ElevenLabs. By my count, in 2025 alone, Nvidia made at least six major moves—three acquisitions (Gretel, Lepton AI, CentML) and three strategic investments (Intel, OpenAI, ElevenLabs). Why spread yourself in so many directions, so quickly? How is it possible to even effectuate these deals and partnerships that feel like they are coming literally every other day?
This would be interesting to watch in any company, but Nvidia isn’t just any company. It’s one of the so-called Magnificent Seven, a stock so heavily weighted in ETFs and indices that nearly every investor — pensions, retirement accounts, mom-and-pop 401(k)s — owns it whether they know it or not.
Nvidia has become the market’s bellwether, and its success or failure dictates the broader market’s moves. If confidence ever cracks in the name, it won’t just be Nvidia’s stock price that falls — it could destabilize the whole market.
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