BREAKING: Circular financing reaches new heights

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BREAKING: Circular financing reaches new heights<br>Things could get bad if this all falls apart

Gary Marcus<br>Aug 11, 2026

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Yikes:

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The stock slipped a bit on the news [217.55 at close, though up a bit this morning in premarket], as this handy chart from FT reports.

For your convenience, I have highlighted the scariest bits.<br>Has Jensen Huang begun to overplay his hand?<br>Some people think so, like the financial journalist Holger Zschaepitz:

Holger Zschaepitz@Schuldensuehner

$500bn of Wall St money to help Nvidia's customers buy Nvidia chips. Jensen calls compute "an investable asset." This is the chart nobody put in the press release. NVDA 5Y CDS jumps by almost 6bps. The cost of insuring Nvidia debt has doubled since late May, from 41.6 to 77.5,

9:34 PM · Aug 10, 2026 · 19.4K Views

30 Replies · 78 Reposts · 336 Likes

Last words in this brief essay go to Jim Chanos, famous for calling the Enron collapse:

James Chanos@RealJimChanos

It’s not out of the realm of possibility that the next time these guys are all at the same table explaining AI financing is before Congress in 2031…

9:17 PM · Aug 10, 2026 · 103K Views

88 Replies · 80 Reposts · 786 Likes

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PS Some other breaking new to watch: Nvidia is releasing a new version of its truly open-source (not just open-weight) Nemotron model, which is good for end users and developers but that could also ultimately undercut places like OpenAI and Anthropic with whom it has deals.

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Discussion about this post<br>CommentsRestacks

Rameez MeeraSahib<br>14m

If it is outside money from institutional investors how is it circular?

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Danielle Church

19m

"If" 🤔

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