[Debunked] Not Circular Funding #PutTheMoneyInTheBank

$NVIDIA (NVDA.US)$
NVIDIA Partners With Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to Establish AI Compute Infrastructure Financing Platforms to Mobilize Over $500 Billion of Third-Party Capital

Previously there have been a lot of shortsellers’ fake news circulating with regards to Nvidia backstopping OpenAI with 250billion (By WSJ), and also fake news by SemiAnalysis on chips delay.

We went in-depth in our previous posts, and highlighted that the backstopping OpenAI was only a shortseller speculation and have no truth in it:

Fake shortsellers speculations on circular fundings, but nobody look at the details.

What’s circular funding and what’s not?

Market Manipulation: Beware of recent increased in shortsellers’ lies before earnings

With the current update from Nvidia, it totally debunked this whole “circular funding” speculation. To sum it up, basically these financial institutional ( $Blackrock (BLK.US)$ $Apollo Global Management (APO.US)$ $Blackstone (BX.US)$ $Goldman Sachs (GS.US)$ $KKR & Co (KKR.US)$ $Brookfield Asset Management (BAM.US)$ ) are the biggest ones to benefit from the AI growth so far and have earned billions from Nvidia and other AI-related stocks this year. It makes sense that they are using that profit to finance the next stage of growth.

This whole circular funding nonsense and the previous is totally debunked with this news as major financial institutions step in. Jensen Huang said that Nvidia has the “option” to backstop up to 125billion (25%) of the deal. Note that it is optional and not contractual, this backstop is to show that Nvidia is commited to the funds.

This financing initiative is to reduce the risk of circular funding, and also with a clear MoU, this means that the initiative would have certain milestones and is not free money.

### The irony of retail AI selling ###

$Oracle (ORCL.US)$ $NVIDIA (NVDA.US)$ $Amazon (AMZN.US)$ $SK hynix (SKHY.US)$ $Meta Platforms (META.US)$ $Advanced Micro Devices (AMD.US)$ $Micron Technology (MU.US)$ $SanDisk (SNDK.US)$ $Microsoft (MSFT.US)$ $Western Digital (WDC.US)$ $Seagate Technology (STX.US)$

The AI Boom Isn’t a Switch Market Manipulators can Flip

Just as traders are putting their money in banks, now these financial institutions are putting their money in AI.

Retail traders sell AI stocks => Put into bank => Financial Institutions use money to fund AI

So retailer investors are basically selling into losses and your institutions are using those money to fund the stocks that you are selling.

The truthly sad irony of those who sold AI and memory stocks aggressively.

#PutTheMoneyInTheBank

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