As the company with the highest market capitalization in the world, Nvidia has recently continued to be scrutinized by the market for suspected “circular financing” — outsiders questioned that it invests in downstream chip procurement customers or uses its own balance sheet to guarantee customer financing, thereby indirectly boosting its own chip demand. Nvidia executives made a full rebuttal to this yesterday, clearly stating that there is no need for the market to worry. Nvidia Chief Financial Officer Colette Kress said yesterday: “We are aware of the scale of this support, and we know that some people call it revolving finance. But our views are very different, and the return on equity we will get from these investments will be very impressive.” CEO Hwang In-hoon also defended the relevant transaction structure in an interview after the earnings report was released. He pointed out that currently there are several cutting-edge AI labs that are “companies that have only been seen once in a generation,” and Nvidia wants to support them not only as investors, but also as partners. Hwang In-hoon said, “Of course, we are happy to see them build an ecosystem on our foundation and work with us to expand the scale of the business. Therefore, an early investment in them was an excellent opportunity. Frankly speaking, I just regret not being able to cast more in the first place.”

As the company with the highest market capitalization in the world, Nvidia has recently continued to be scrutinized by the market for suspected “circular financing” — outsiders questioned that it invests in downstream chip procurement customers or uses its own balance sheet to guarantee customer financing, thereby indirectly boosting its own chip demand. Nvidia executives made a full rebuttal to this yesterday, clearly stating that there is no need for the market to worry. Nvidia Chief Financial Officer Colette Kress said yesterday: “We are aware of the scale of this support, and we know that some people call it revolving finance. But our views are very different, and the return on equity we will get from these investments will be very impressive.” CEO Hwang In-hoon also defended the relevant transaction structure in an interview after the earnings report was released. He pointed out that currently there are several cutting-edge AI labs that are “companies that have only been seen once in a generation,” and Nvidia wants to support them not only as investors, but also as partners. Hwang In-hoon said, “Of course, we are happy to see them build an ecosystem on our foundation and work with us to expand the scale of the business. Therefore, an early investment in them was an excellent opportunity. Frankly speaking, I just regret not being able to cast more in the first place.”