Jennifer Blakely

JUST IN: 🇺🇸 JPMorgan says failure to pass the Clarity Act will hurt crypto markets. "The longer the approval of the Clarity Act is postponed, the greater the threat to crypto markets."

News: Schumer has sent the White House two names each for the SEC and CFTC, people familiar with the move tell me, following months of finger-pointing over the empty seats as part of Senate negotiations over the crypto bill. The nominees' identities remain unclear: "Nobody wants any of these nominees to get flamed before they get a fair chance," one person told me.

NVIDIA MIGHT BE USING A FUNDING LOOP THAT PAYS FOR ITS OWN CHIP SALES Nvidia just unveiled a new round of AI deals worth more than $750 billion combined. The largest single deal: a $500 billion+ partnership with SK Hynix's parent company to build over 2 gigawatts of AI data centers in Korea, enough power for 1.5 million homes. Nvidia is also in talks to guarantee up to $250 billion of OpenAI's lease payments on a massive data center project in Ohio, and to directly finance another $350 billion of OpenAI's chip purchases from Nvidia itself. Here's how it becomes the loop: Nvidia sells the chips. Then Nvidia helps finance the same companies buying those chips. The company profits either way, whether or not AI demand actually shows up. This matters directly for Nvidia's own earnings. Every chip sale gets booked immediately as revenue the moment it's sold, even when Nvidia itself is the one funding the buyer's purchase. That means Nvidia's revenue and profit numbers can look strong quarter after quarter, without the market ever knowing how much of that demand Nvidia had to pay for itself. Nvidia isn't alone in this. Google agreed to backstop lease payments for Anthropic at five data centers, functioning as a $35 billion loan. SoftBank has already committed nearly $65 billion into OpenAI and taken out a $40 billion bridge loan just to fund that one investment. Jensen Huang has pushed back directly, calling the "circular" label "ridiculous," and noting these deals are still a small share of what these companies ultimately raise elsewhere. If AI demand ever falls short, the chipmaker, the buyer, and the lender all lose money at the same time, because they're all standing on the same foundation. Michael Burry raised a similar alarm recently about a separate Nvidia deal tied to Elon Musk's xAI, alleging billions in chips are hidden off balance sheets, with American retirees unknowingly funding the risk through insurance products.

BREAKING: Nvidia is in talks to backstop $250 BILLION in financing for OpenAI. The guarantee would let OpenAI lease a 10-gigawatt data center in southern Ohio, built by SoftBank. The full project could cost more than $500 BILLION. Its power is effectively rationed by the US government and financed by Japan under a recent trade deal. Nvidia is also separately weighing another $350 BILLION to fund OpenAI's chip purchases. This could be one of the biggest data center projects ever built.

🚨SEN. CHRIS MURPHY REJECTS CLARITY ACT OVER TRUMP CRYPTO TIES! Democratic Senator Chris Murphy said he will not support the Bitcoin and crypto Clarity Act, arguing the president cannot remain a major player in crypto markets while regulating the industry. “That reality is fundamentally corrupt,” Murphy stated. “We should never allow a president to be an actor in an industry he regulates… This is a red alarm moment.”