Updated

A report examined how the roughly $745 billion web of financing arrangements linking Nvidia, OpenAI and Oracle faced its first real stress test following the Federal Reserve's interest-rate hike. The circular deal structure, in which the companies fund each other's AI infrastructure buildout through investments, financing commitments and compute purchase agreements, has drawn scrutiny over its sensitivity to rising borrowing costs. Analysts have raised concerns that higher rates could strain the economics of the arrangement, given the scale of capital involved and the reliance on continued strong demand for AI compute. The episode highlights broader investor questions about the sustainability of interlocking financing structures underpinning the AI infrastructure boom.