Nvidia NVDA CEO Jensen Huang defended the company’s expanding financial involvement in the artificial intelligence sector on Wednesday, arguing that its infrastructure investments can be shifted across customers if individual projects face difficulties.
Huang said the capital requirements for developing and operating advanced AI systems have created funding needs unlike those seen among earlier startups. Nvidia has invested across the sector, including AI model developers and cloud providers, while also supporting large data-center projects.
The company’s financing activity has drawn concerns that some arrangements could create a cycle in which funding ultimately supports purchases of Nvidia products. Huang said the company can participate as an investor while helping AI firms secure computing capacity and capital.
Nvidia reported $96.2 billion in fiscal second-quarter revenue, more than double the year-earlier figure. Data-center revenue increased 117% to $89 billion, while the company expects about 70% revenue growth in fiscal 2028.
For now, Nvidia’s results may ease concerns about AI demand, but scrutiny of its financing strategy remains a potential risk.