Nvidia allegedly engineered scarcity by funding AI startups to buy its GPUs

A Wall Street Journal report, cited by Wccftech, alleges that Nvidia invested in AI startups that would then buy its GPUs and build data centers, aiming to sustain the perception of high demand and move an oversupply of semiconductors from TSMC. The report cites an August meeting in which CFO and acting CEO Colette Kress pushed to reduce circular financing agreements and scale back Nvidia's $250 billion deal with OpenAI, after which Jensen Huang allegedly called her a "deer in the headlights." It also states that the small cloud providers Nvidia invested in could not afford to buy its GPUs, making them a potential financial dead end.