Jim Chanos Says Nvidia Is Effectively Financing Its Own AI Chip Sales in Reported OpenAI Deal

Famed short-seller Jim Chanos publicly criticized Nvidia Corp. (NASDAQ:NVDA) following reports that the tech titan is in talks to guarantee $250 billion in financing for an OpenAI data center project, calling out the chipmaker for effectively bankrolling “roughly 2/3rds of the cost” of its own hardware sales.

The $250 Billion Circular Guarantee

Reports suggest that Nvidia is discussing providing a massive $250 billion financial backstop to help OpenAI lease a 10-gigawatt AI data center in southern Ohio.

Developed by SoftBank’s energy subsidiary, the megaproject is expected to cost more than $500 billion in total. The proposed guarantee covers data center lease and debt financing, while Nvidia is separately negotiating up to $350 billion in funding for OpenAI’s direct chip purchases.

Chanos took to social media platform X to highlight the circular nature of the potential arrangement, writing: “So we are at the point in the cycle where $NVDA has to provide financing guarantees for roughly 2/3rds of the cost of the chips it is selling to the data center project…?! Lol, ok.”

Growing Skepticism Among Wall Street Veterans

Chanos is not the sole prominent investor raising red flags over AI debt structures. ‘Big Short’ investor Michael Burry echoed similar skepticism, writing on X, “Around and around we go. Nvidia to guarantee $200 billion of ChatGPT’s spending on $NVDA chips.”

Meanwhile, tech commentator Ed Zitron characterized the proposed deal as “about as bearish as it gets,” questioning the long-term feasibility of the capital requirements.

High Stakes for AI Infrastructure

For OpenAI, the prospective deal represents a major shift toward controlling its own infrastructure rather than relying on leases from cloud giants like Microsoft Corp. (NASDAQ:MSFT), Amazon.com Inc. (NASDAQ:AMZN), and Google parent Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL).

However, critics argue that resorting to vendor financing guarantees to secure future demand signals growing financial circularity as global spending on artificial intelligence infrastructure approaches $700 billion this year.

How Has NVDA Performed In 2026?

NVDA shares were up 10.91% year-to-date, 3.94% over the last month, and higher by 19.05% over the year. It closed 0.92% lower at $206.84 per share on Friday, and it was up 1.13% in premarket trading on Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo courtesy: Shutterstock