Living larger and larger: Inside the AI financing scramble
Aug 15
1 min read
BARRON’S — For Nvidia, there are doubts that the company can keep up its rocket-like growth and protect its 75% gross profit margin.
Nvidia’s biggest customers—hyperscalers like Amazon.com, Microsoft, Alphabet, and Meta Platforms—have reached the limits of their substantial operating cash flows and are dipping into debt and equity financing to fund 2026 and projected 2027 capital expenditures. Investors are wondering, how far can that go?
Moreover, the hyperscalers want to be less dependent on Nvidia and are seeking to diversify their supply chains, including by making their own AI chips.
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