People think it is a problem because with AI startups most of the money in these investments comes right back to nvidia as revenue.

So nvidia gets to do this:

1) start with $100 M

2) invest in startup

3) get investment worth at least $120 M (investment at discount)

4) reflect 20% gain on books

5) receive $80 M in guaranteed revenue (H100s)

So before the inevitable long-term failure of 90% of these startups, nvidia gets to reflect a nearly immediate 100% gain on any money they run through this.

Then they use the gain to invest in more startups where the only thing guaranteed is the purchase of nvidia chips.

When the startups go to zero and the market is flooded with used H100s they probably believe they will release a new arch and repeat.