Nvidia Denies Vendor Financing Allegations as Short Sellers Scrutinize Chipmaker
Nvidia pushed back against claims it engages in vendor financing, a practice likened to accounting maneuvers employed by Enron and Lucent. The chipmaker issued a seven-page rebuttal, asserting its business model remains transparent and devoid of such tactics. Yet the allegations have drawn scrutiny from prominent short sellers, including Jim Chanos and Michael Burry.
Chanos, famed for exposing Enron, sees parallels between Nvidia’s partnerships with firms like CoreWeave and Nebius and Lucent’s dot-com era schemes. The implication: Nvidia may be propping up money-losing clients to sustain demand for its chips. Burry, meanwhile, has yet to publicly detail his stance but is reportedly monitoring the situation.
The controversy emerges as Nvidia’s stock faces heightened volatility. While the company denies impropriety, the specter of past financial scandals looms—a narrative short sellers are eager to amplify.
