The Hottest IPO of 2026 Will Shock You
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What is the main topic discussed in this episode?
It's Monday and Jensen Wang is making big deals. Motley Fool Hidden Gems Investing starts now. Welcome to Motley Fool Hidden Gems Investing. I'm Travis Hoy. I'm joined today by Lou Whiteman and Tyler Crow. Guys, we're taking over the Monday show today. So we can bring some heat. And over the weekend, we got some interesting news, Tyler, that Jensen Wong and NVIDIA, again, making potentially massive deals. This time, the reporting from the Wall Street Journal is that they are going to basically backstop potentially investing. a $250 billion project. I even saw $500 billion thrown around that OpenAI would like to build. Somebody's got to guarantee those debt payments, those lease payments, and NVIDIA apparently seems to have raised their hand.
Yeah, well, you know, to the point we're all kind of having the substitute teacher energy today with the three of us doing the Monday show. The funny thing was, is I feel like that Wall Street Journal article kind of buried the lead, too, because not only was NVIDIA saying they're going to guarantee that $250 billion, that's just for the build-out of the facility and had nothing to do with the chips. And then it was like, and it could potentially also be another $350 billion in chips on top of the equity stake that... NVIDIA's already invested in it.
What's a half trillion dollars between friends?
I mean, it really, the numbers now almost seem like they're just made up. I'm about to go $11 billion or something like for all these deals here. And again, this wasn't the only deal that was announced today.
What is NVIDIA reportedly guaranteeing for OpenAI’s massive data-center buildout?
NVIDIA's on a real heater here. On top of the OpenAI deals that were announced, it was obviously smaller because these were smaller companies, but... NVIDIA also decided to deal with Thinking Machines, which was a new startup kind of coming out of those, like the open AI genesis of people who started early on, as well as, I always mispronounce his last name, Ilya... Ilya Satskever. So it's got a super micro safe, super intelligence. Awful name, dude. Get a better name. Either way, like all three of these companies are just basically getting in video money thrown at them right now. And so a lot of money going out the door really kind of, you know, we're going to touch on this like that circular accounting thing is starting to come back up again, which does give some people who have been around a little bit longer, some nervous feelings.
Lou, this reminds me a little bit about the discussions we've had about Eli Lilly. Hey, when the times are good and you've got a high valuation, you've got cash, try to build a remote around your business. Eli Lilly is buying other pharma companies. NVIDIA is making sure their customers are staying afloat.
Yeah, I'm glad Tyler didn't say bender. They're not on a bender today. They're on a roll, right? But maybe we'll see. It might turn into a bender. Here's the good news for NVIDIA shareholders is that there's enough cash there. This is not a bad balance sheet. So the debate here is whether or not the stock works or the stock doesn't work from here. It's not, will the company fail? I don't think we have to worry about that. And look, there is a way that this all works out fine. The way is AI is everything we think it is. It generates all the revenue that we've seen in projections. Revenue solves all issues. If all these companies can pay back all of this debt that they're taking on, NVIDIA's got nothing to worry about.
But obviously, there's a lot of ways this doesn't work out. You know, Tyler mentioned the circular funding. The obvious comparison here is vendor financing in the 90s. I get the concerns. I get why that's scary. But let's just say balance sheets are a lot stronger than in the 90s. Back to what I said before about NVIDIA. And this feels like a different business environment. In the 90s, we were financing fiber being laid that was 90 percent not being used or even more. We just we were building excess capacity. We weren't building for what we need today.
Well, to be fair, we are building data centers that don't yet have chips in them.
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Chapters
4 chapters
1
What is the main topic discussed in this episode?
0:02–1:36
2
What is NVIDIA reportedly guaranteeing for OpenAI’s massive data-center buildout?
1:36–4:51
3
How much additional chip spending could NVIDIA potentially underwrite for OpenAI?
4:51–10:21
4
What risks does circular or vendor financing pose for the AI hardware ecosystem?
10:21–20:07