The Core of the 2026 AI Bubble! The Shock of ‘Circular Financing’ by Nvidia and Neocloud

What Happened? News Overview

• The Rise of Neocloud: CoreWeave and Nebius have secured massive contracts exceeding $122.2 billion (around 18 trillion yen) by leveraging rapid access to Nvidia’s latest GPUs from giants like Microsoft and Meta.
• Astounding Power Acquisition: Both companies have locked in contract capacities of 3.5GW each. CoreWeave aims for 1.7GW by the end of 2026, while Nebius targets up to 1GW, turning a substantial backlog into revenue.
• Exposing the ‘Circular’ Structure: Nvidia’s direct investments and financial support to these Neocloud firms are fueling a ‘circular financing’ model where they purchase Nvidia GPUs, sparking debates in the market.

Why Is This Important? Key Takeaways

• Shift from Capex to Opex: Hyperscalers like Microsoft and Meta are avoiding massive capital expenditures (Capex) by treating payments to Neocloud as operational expenses (Opex), thereby improving their balance sheets.
• Unmatched Deployment Speed: While traditional cloud setups take years, CoreWeave boasts the agility to operationalize the latest chips like the Nvidia GB200 NVL72 in just two weeks from receipt.

🦈 Shark’s Eye (Curator’s Perspective)

This Neocloud sprint is a classic case of ‘GPU doping’! Nvidia is not just funding these buyers (Neocloud), but also nurturing them to snag hefty contracts from Big Tech—talk about a match made in tech heaven! The speed of CoreWeave’s “deploying the GB200 NVL72 in two weeks” is a game-changer that could shake the throne of existing cloud kings! However, the strategy of expanding infrastructure while bleeding cash and racking up massive debt is akin to a shark navigating stormy seas. Stop swimming, and it’s game over in this thrill-seeking business model!

What’s Next?

Achieving the 2026 revenue forecasts (CoreWeave $12.6B / Nebius $3.4B) will be a litmus test for the sustainability of this massive circular structure. The speed of connecting to the power grid will be the decisive factor in the competitive arena.

A Word from HaruShark

Nvidia is backing the ultimate shark squad! But watch out for overindulgence (debt) lurking in the depths! 🦈🔥

Glossary

• Neocloud: An emerging cloud service provider focused on AI, excelling in the speed of adopting the latest GPUs compared to traditional general-purpose clouds.

• Circular Financing: A structure where suppliers (Nvidia) invest in customers (like CoreWeave) to enable them to purchase their products, artificially boosting apparent sales.

• GW (Gigawatt): A unit of power capacity. 1GW is equivalent to a large nuclear power plant and is currently a key metric for measuring data center scale as of 2026.

• Source: Nvidia, CoreWeave, and Nebius: Inside the Circular Financing of the GPU Boom