Rich Duprey
5 min read
Quick Read
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Jim Cramer calls the Journal story a “hitjob” and backs Colette Kress, wondering whether she asked the questions other Nvidia executives avoided.
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Kress raised concerns about Nvidia’s financing commitments to AI customers and reportedly helped halve a proposed OpenAI commitment.
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Nvidia capped guarantee obligations at $109 billion for AI cloud and data center partners, while supply obligations rose to $279B.
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Jim Cramer is supporting the executive Jensen Huang reportedly belittled. The Wall Street Journal reported that Huang called Colette Kress “a deer in the headlights” during a meeting this summer. Cramer called the story a “hitjob” and wondered whether Kress had been willing to ask the questions other executives avoided. Kress became interim CEO of NVIDIA (NASDAQ:NVDA) after Huang resigned on November 12. His argument matters as investors consider the leadership change. Nvidia closed at $162.85 on November 13, down 12.75% for the week and 26.41% over the past month.
Inside the Meeting Where Kress Questioned Nvidia’s Dealmaking
According to the Journal’s report, Huang called in his senior finance team to assess a growing problem: Nvidia was in talks to provide billions of dollars of guarantees to companies that couldn’t afford its chips. A person familiar with the comments told the paper that Huang interrupted Kress’s presentation to make the remark. Kress had raised concerns about Nvidia’s financing commitments to AI customers and reportedly helped halve a proposed OpenAI commitment.
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Nvidia’s own disclosures show how large those commitments had become. Its fiscal second-quarter report capped guarantee obligations at $108.5 billion for AI cloud and data center partners, while supply obligations rose to $279B, mostly for Vera Rubin memory. On the earnings call, Huang addressed the criticism directly: “We recognize the scale of this support, and we know some will call this circular financing. We see it differently.” Management said that demand from AI labs where Nvidia expects to use its balance sheet could account for roughly a quarter of its business next year.
