Nvidia reckons new $500 billion investment should allay fears AI companies are just funded by the same pot of cash moving around in one big circle. Reassured yet?

This week, Nvidia announced it will be receiving "over $500 billion of third-party capital" from banks and investment companies. And now, in a blog post explaining how 'AI factory' compute is "becoming an investable asset class", Nvidia has answered the question, "Is this circular financing?"

The company says: "This initiative is designed to address that concern. We are bringing independent, long-term institutional capital into the AI infrastructure market.

"The demand is real: it comes from frontier AI labs, AI-native startups, enterprises, cloud providers and countries building AI services. The capital providers independently underwrite each project — including the customer, demand, utilization, cash flow and residual value. NVIDIA provides the platform; the investors make independent financing decisions.

"This is the beginning of an o...