The US investor depicted in the film The Big Short has criticised Nvidia’s new $500bn (£370bn) AI funding deal, claiming it has “shades of Enron”.

Jensen Huang and senior executives from companies including Apollo, BlackRock and Goldman Sachs have announced a memorandum to raise over $500 billion. The funding will come from external sources and each project will be assessed independently,

BofA says Nvidia stock could benefit as a new $500 billion-plus financing platform shifts more AI funding risk to outside investors

Nvidia's Nemotron 3.5 Lightning is free and fast. The planned trillion-parameter Nemotron 4 would still trail the leading Chinese open models.

Nvidia stock NVDA rose early Wednesday as investors appeared to take some comfort from a new financing initiative involving six of Wall Street’s biggest investment firms. Shares rose around 3% to about $223 in early trading.

Huang said earlier this year that he thinks Nvidia's Blackwell and Vera Rubin platforms will combine for $1 trillion in sales between 2025 and 2027.

For their part, the hyperscalers are no longer content only to buy Nvidia’s chips. They are spending billions on designing their own. Some hyperscalers believe custom silicon will become a big business in its own right.

An analyst says that Nvidia’s move to downgrade some chip capabilities could end up boosting consumption of high-bandwidth memory.

NVIDIA Nemotron Lightning delivers 4x throughput for AI agents. This 30B parameter model handles repetitive execution tasks with high speed and low cost.

Nvidia (NVDA) is set to report fiscal second-quarter results on Aug. 26, and the Jensen Huang-led firm is likely to see a continued ramp of its GB300 GPUs ahead of the release of its next-gen Vera Rubin line,

Nvidia looks like a bargain heading into its upcoming quarterly earnings event.