Many people have called Nvidia's AI investments circular financing, but the company sees it differently. Frontier AI labs are growing faster than what their balance sheets and credit profiles can support. Growth can only continue as long as they can secure ever-greater amounts of computing power, which they would have trouble doing on their own as they lack the ability to borrow huge sums of money at competitive rates. Nvidia aims to power this flywheel until AI labs are able to support themselves.