The trick: Circular Money
Nvidia may buy into the company that turns Nvidia's chips into $750 million of "revenue."
The buyer, the seller, and the compute are all the same trade, three days before Nvidia tells Wall Street how the quarter went.
Nvidia is in talks to invest in Perplexity as part of an equity funding round that would value the AI startup at more than $30 billion, with Perplexity's annualized revenue reported to have risen to more than $750 million from less than $250 million at the start of the year.
Before you read on. Your call?
TRUE, BUT
40x revenue
The buyer, the seller, and the compute are all the same trade, three days before Nvidia tells Wall Street how the quarter went.
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The trick has a name
We call it Circular Money: the customer is funded by the vendor. You'll see it again. Learn to spot it →
Receipts
- Supports benzinga.com:
Nvidia is considering participating in Perplexity's latest equity financing round, which could value the company at more than $30 billion
- Context benzinga.com:
Nvidia and Perplexity did not immediately respond to Benzinga's request for comment.
- Context tradingview.com:
NVIDIA is effectively bailing out anyone in the AI industry as a means of inflating their valuations and keeping them buying compute
- Context bis.org:
Chip makers and hyperscalers take equity stakes in AI labs or neocloud providers, who in turn commit to multi-year purchases of chips or computing power.
- Context en.cryptonomist.ch:
Nvidia first put money into the startup back in late 2023, well before generative search became a crowded and increasingly competitive category.
- Context pymnts.com:
The new funding values the company at $20 billion, according to multiple media accounts late Wednesday.
Open the Receipts Pack → What each source proves, every figure traced, and what would change our verdict.