Nvidia's Potential $250 Billion OpenAI Financing Deal Is Reviving a 1990s Tech Bubble Habit, Analyst Warns: 'Usually Don't End Well'

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While the structure of Nvidia Corp.‘s (NASDAQ:NVDA) potential financing to help OpenAI lease a massive Ohio data center remains unclear, Seaport Research analyst Jay Goldberg expressed caution about such an arrangement.

Goldberg warned that vendor financing can backfire, noting companies have previously hurt themselves by financing customer purchases. He pointed to Lucent Technologies‘ 1990s telecom financing strategy, which he said ultimately “essentially broke that company,” reported MarketWatch.