Jensen Huang Promises This AI-Infra Deal Isn’t Circular Financing

Jensen Huang Promises This AI-Infra Deal Isn’t Circular Financing

Mitchell Duran

Mon, August 17, 2026 at 10:31 PM GMT+3 4 min read

• NVDA -2.34%

THE GIST

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With a market cap of almost $5 trillion, Nvidia is the world's most valuable company. Nvidia CEO Jensen Huang is doing everything he can to keep it that way.

He recently announced a $500 billion financial engineering plan with six Wall Street firms to turn his AI chips into what Michael Burry, the infamous short seller made famous by the 2008 housing crisis, called "GPU-backed securities."

Huang's latest attempt to keep this AI train going unsurprisingly involves more AI infrastructure and two of the sector's biggest players.

WHAT HAPPENED

In another attempt to prove to the market that Nvidia and its partners are building what will one day (they swear) unleash unimaginable profits, Nvidia, with SB Energy (SoftBank) and OpenAI, announced yet another AI infrastructure deal.

Huang even came up with a new acronym for it: "Land, power, and shell" capacity, or "LPS."

We got a hint that a deal like this was coming from the federal government back in March. The Departments of Energy and Commerce announced a plan to build "10 gigawatts (GW) of new power generation," including "at least 9.2 GW of natural gas generation," to power a 10GW data center development.

The phased timeline is where all of this gets a little…wishful. The first 800 megawatts of power and data center shell are scheduled to come online in 2028. No exact calendar month has been reported yet. The primary 4.25-gigawatt deployment will arrive and come fully online sometime thereafter in 2028 - 2030, requiring $4.2 billion in regional power grid and transmission upgrades. Overall, a six-year construction project running through 2032.

This "trust me, bro," "demand is never gonna stop demanding, bro," strategy didn't impress Wall Street, sending NVDA up 1% on the news only to send it right back down.

WHY IT MATTERS

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Nvidia knows how this announcement looks when Huang's X post literally has to ask itself, "Is this circular financing?"

Huang's answer? No, and OpenAI is paying the lease.

OpenAI last Thursday announced $40 billion in annual revenue, doubling from eight months ago. But the ChatGPT-maker is burning cash, with media reports of up to $115 billion through 2029. And that's before assumed "profitability" in the 2030s, all as Greg Brockman, OpenAI's president, told CNBC in an interview Monday that it was not "atypical" that some 12 senior execs have left the company so far this year.

If OpenAI implodes, Huang has that scenario covered, asking, "What happens to PORTS-Pike if OpenAI does not use the site in the future?"

Huang explains that "capacity," hitting us with his best impersonation of Jeremy Irons from Margin Call, can be "resold to another qualified tenant across NVIDIA's global ecosystem of cloud service providers, enterprises, AI labs, and startups."

In other words, Huang assumes he will sell to the same people he's been selling to for years and at their future fair market price. They can do this because they have CUDA, a software platform that speeds up processing.

WHAT'S NEXT

In October of 2022, Nvidia traded around $11 a share, split-adjusted. Today it's $225. Six stock splits since the 1999 IPO — the most recent a 10-for-1 that took effect June 10, 2024 — have multiplied the share count 480 times over.

Splits like that make the stock cheap enough for anyone to own. This rhymes with Nvidia's strategy: make sure every company, big or small, can get its hands on top-of-the-line chips. Even if that means the buyer borrows billions to do it, and even if those loans get repackaged into a tradeable product that Burry has taken to calling "GPU-backed securities."

This deal, suspicions aside, once again proves Nvidia will do whatever it takes to stay on top, wrapping new tech in old financial tricks and hoping history doesn't rhyme.