Wall Street Is Obsessing Over Nvidia's $105 Billion Circular Financing Structure With OpenAI. Here's the More Important Deal No One Is Talking About.

• Nvidia partners with OpenAI for $110B funding and data center financing. • Nvidia rumored to acquire Hugging Face for $12.9B, securing AI model marketplace. • Hugging Face deal strengthens Nvidia's ecosystem via CUDA and open-source visibility. Nvidia (NVDA) is central to two AI bets: a $110B OpenAI partnership involving $30B Nvidia investment and $105B guarantees for a 4.25GW data center, and a reported $12.9B acquisition of Hugging Face. The OpenAI deal raises concerns over circular financing and customer concentration, while Hugging Face offers control over the open-source AI model marketplace. Owning this platform enhances Nvidia's CUDA lock-in, provides visibility into winning models, and secures long-term ecosystem dominance beyond single contracts.