Nvidia, CoreWeave, and Nebius: Inside the Circular Financing of the GPU Boom

Nvidia-backed neocloud companies CoreWeave and Nebius are experiencing rapid growth in AI infrastructure demand from hyperscalers like Microsoft and Meta, but their expansion relies on risky circular financing structures involving Nvidia investments and GPU-backed debt rather than sustainable cash flow. While these companies control substantial contracted power capacity (3.5 GWs each), they face profitability challenges and soaring debt loads as they race to convert contracted power into active infrastructure in an increasingly difficult macroeconomic environment.