# Nvidia deliberately kept GPU prices high through circular financing deals

- HackerByte page: <https://hackerbyte.net/en/stories/nvidia-deliberately-kept-gpu-prices-high-through-circular-financing-deals-50501631>
- Original source: <https://www.techspot.com/news/114558-nvidia-deliberately-kept-gpu-prices-high-through-circular.html>
- Hacker News discussion: <https://news.ycombinator.com/item?id=50501631>
- Submitted to Hacker News: 2026-11-14T22:26:30.000Z

## AI-generated summary

New information suggests Nvidia's former CEO, Jensen Huang, employed a strategy of circular financing to deliberately keep GPU prices high, fueling the AI boom. The company financed customers to absorb oversupply and maintain inflated prices, drawing comparisons to Enron. Despite internal concerns about over\-ordering chips from TSMC, Nvidia continued these deals until Huang's resignation.

## Key points

- Nvidia allegedly used circular financing to artificially inflate GPU prices.
- The strategy aimed to absorb chip oversupply and sustain the AI boom.
- Former CEO Jensen Huang defended the practices against Enron comparisons.
- Internal concerns arose about over\-ordering semiconductors from TSMC.
- The company directed VRAM and semiconductors towards data center GPUs, impacting consumer prices.