Nvidia CEO Jensen Huang has dismissed concerns that the company’s $2 billion investment in cloud infrastructure firm CoreWeave constitutes a circular deal, calling the idea “ridiculous.” Speaking to Bloomberg News, Huang emphasized that such investments reflect genuine confidence in the long-term potential of the companies involved, rather than a self-reinforcing loop of capital. The deal marks an expansion of Nvidia’s prior stake in CoreWeave, with the company purchasing $2 billion worth of the cloud provider’s shares. According to a joint statement, the funds will support CoreWeave’s efforts to secure land, power, and physical infrastructure for building AI data centers—facilities that will be powered by Nvidia’s own chips. This alignment, Huang argued, is not circular but strategic, enabling both companies to scale rapidly in the AI era. Huang reiterated that Nvidia’s investment represents only a small fraction of the massive capital required for AI infrastructure. He pointed to OpenAI’s projected $1.4 trillion spending over the next eight years as evidence of the scale involved. “Whatever we decide to invest is a small percentage, very small percentage of the overall amount of infrastructure, capital they're going to have to raise,” he told CNBC in a separate interview. This is not the first time Nvidia has pushed back against skepticism about its partnerships. In November, the company issued a formal letter to Wall Street analysts in response to investor Michael Burry, known for his short position during the Dotcom crash. Burry has questioned Nvidia’s valuation and long-term sustainability, likening the company to Cisco before its downturn. In his Substack post, Burry clarified he isn’t accusing Nvidia of being Enron, but warned it could face a similar fate if its growth model isn’t sustainable. Nvidia’s leadership maintains that its business fundamentals are strong, its financial reporting is transparent, and its reputation for integrity is paramount. The company continues to defend its role as a foundational player in the AI revolution, arguing that its investments are not about creating artificial cycles but about fueling real, large-scale technological advancement.