NVIDIA's AI Startup Funding May Have Raised GPU Prices for Gamers
NVIDIA is under scrutiny after a Wall Street Journal report revealed it explored financing AI startups to buy its own chips, potentially inflating demand and keeping GPU prices high. The allegations follow CEO Jensen Huang's ouster on November 12 over personal misconduct. The report details NVIDIA's plans to provide billions in financial guarantees to startups, led by Huang's son-in-law, in exchange for future revenue shares. Huang feared an "avalanche" of unsold chips from TSMC commitments, while interim CEO Colette Kress pushed back on the risky strategy. Gaming GPU prices have surged about 35% since August, with the RTX 5090 reaching $9,400, though a direct link to NVIDIA's financing deals remains unproven. The company has since paused some proposals and added oversight.