Connecting the dots: The AI boom has been widely blamed for GPU prices spinning out of control over the past year. Following Jensen Huang's resignation from Nvidia,new information suggests that this was the goal of the former CEO's business strategy, which has long drawn accusations of circular financing.
A recent Wall Street Journal profile of Nvidia interim CEO Colette Kress has shed more light on how Nvidia controversially financed its own customers to drive the AI boom. According to the report, the company pushed for more deals in mid-to-late 2026 to absorb an oversupply of TSMC wafers and keep GPU prices high.
Since at least last year, Nvidia has been accused of prolonging the AI boom by supporting the companies that buy its chips. Co-founder and former CEO Jensen Huang, along with CFO Kress, even went so far as to defend the company against comparisons to Enron, which used similar tactics to illegally obscure its debt before its 2001 collapse.
