Friday, November 13th 2026
NVIDIA Allegedly Engineered Scarcity By Funding AI Startups To Buy Its GPUs
Following the departure of now-former NVIDIA CEO, Jensen Huang, a new report by The Wall Street Journal (via Wccftech) has emerged alleging that NVIDIA artificially inflated the ongoing GPU and memory shortage by investing in AI startups that would go on to buy NVIDIA GPUs and build data centers. The reason behind this was to maintain the perception of ongoing high demand and to move an oversupply of semiconductors from TSMC.
The WSJ report cites an August meeting between Huang and his senior finance team, including NVIDIA's CFO and acting CEO, Colette Kress, during which Kress pushed for a reduction in circular financing agreements, in response to which Huang allegedly lay into Kress, calling her a "deer in the headlights," after she had pushed to scale back NVIDIA's $250 billion deal with OpenAI. Jensen's push for further investment into small-scale cloud providers was seemingly in response to the changing tide that saw AI hyperscalers move away from off-the-shelf components in favor of custom solutions.
The situation described in the report saw NVIDIA on the hook for an "avalanche" of GPUs from TSMC, for which it would have no immediate buyers. Part of the issue highlighted by Kress was also that these small-scale cloud providers NVIDIA was investing in could not afford to buy NVIDIA GPUs, meaning they, too, could be a financial dead end.
Sources:
The Wall Street Journal, via Wccftech
The WSJ report cites an August meeting between Huang and his senior finance team, including NVIDIA's CFO and acting CEO, Colette Kress, during which Kress pushed for a reduction in circular financing agreements, in response to which Huang allegedly lay into Kress, calling her a "deer in the headlights," after she had pushed to scale back NVIDIA's $250 billion deal with OpenAI. Jensen's push for further investment into small-scale cloud providers was seemingly in response to the changing tide that saw AI hyperscalers move away from off-the-shelf components in favor of custom solutions.
28 Comments on NVIDIA Allegedly Engineered Scarcity By Funding AI Startups To Buy Its GPUs
( I'm waiting for more sh!t that comes down the tracks that will paint a larger picture. )
quelle surprise
More reports coming... 😒
Anyway, as I've said in another thread, I believe he is a major loss for the tech industry because he was forward-thinking and capable of driving progress.
However, as I've also said, his business tactics were truly provocative, monopolistic, and anti-consumer. Of course, while many of us sat around writing about how Nvidia operates, various people would chime in to tell us that other companies that have done far less were just as bad—granting Nvidia absolution through false equivalence and lumping everyone together. Where are those today. Most of those vocal members of this forum have disappeared.
It really is too bad that he chose the dark side.
Sucks to be him right now.
Jensen is just a small part of the problem, the larger problem is big money wanting to earn more money faster and it doesn’t care if it ruins the wider economy.
Back to topic;
This current flood of "speculation" is boring me to death.
R.I.P.,
Fred.
I wonder what else will pop up in the next days.
I could be wrong because I am not a lawyer.
Even if he looses half in a divorce he still has billions.