A quarter of Nvidia’s business next year comes from labs it is financing
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Nvidia has invested nearly $50 billion in AI labs that purchase its chips and has lined up over $500 billion in commitments through partnerships with firms including Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR. CFO Colette Kress said demand from these backed labs will account for roughly a quarter of Nvidia's business next year. She acknowledged the arrangement could be called circular financing but rejected that label, arguing that outside lenders assess deals independently, customers are investment-grade or backed, and hardware can be resold if a customer fails. Nvidia also supports smaller cloud operators by guaranteeing capacity rental, earning both equipment sales and a share of income above a floor. Risks remain that Nvidia could lose both a sale and investment if a lab cannot pay, though Kress contends hardware will find another buyer while demand exceeds supply. CEO Jensen Huang said his only regret was not investing more and sooner, and he predicted AI has become mostly agentic in the past month, with agents needing 15 to 100 times the compute of humans. Nvidia guided to $108 billion in revenue this quarter and roughly 70% growth for the year to January 2028, while warning that rising memory prices are pressuring margins.
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