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Nvidia AI financing raises financial-system risk questions: Analysis

Nvidia AI financing raises financial-system risk questions: Analysis

Nvidia CEO Jensen Huang addresses participants at the keynote of CES 2025 in Las Vegas, Nevada, on January 6, 2025.

Artur Widak | Nurphoto | Getty Images

Nvidia CEO Jensen Huang‘s shock resignation is raising a worrying question: Could trouble at the chipmaker spread through the tightly connected financial network Nvidia has built to support the artificial intelligence boom?

Serious problems with Nvidia could do far-reaching economic and financial damage. The company has made hundreds of billions of dollars in financial commitments to other firms to help the industry grow, earning it the nickname the “central bank of AI.” The Federal Reserve and other financial institutions are closely watching the AI buildout to monitor for the…

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