Premium: The Hater's Guide To Circular Financing (Part One)

Newsletter · Watch/Read · (gathered 2026-08-29)

• Ed Zitron argues that NVIDIA’s remarkable stock growth and revenue are increasingly reliant on a “circular financing” operation, where the company effectively funds its own customers to purchase its expensive AI GPUs.
• NVIDIA’s strategy involves creating demand by investing billions in “neoclouds” (companies that raise debt to buy NVIDIA GPUs and rent them out) and other AI ventures like Poolside and Perplexity, which are then expected to become significant customers.
• While hyperscalers account for 50-60% of GPU sales, a substantial and questionable portion comes from these “neoclouds” and “sovereign AI customers,” whose independent funding and actual demand are critically examined.
• This “Hater’s Guide” is the first part of an analysis that promises to delve into the limitations, “material concerns,” and historical precedents of circular financing, implying a critical warning about the sustainability of NVIDIA’s current model.