Nvidia (NVDA) is addressing growing concerns on Wall Street after rumors surfaced that the company might be helping customers finance chip purchases, coinciding with increased attention from high-profile short sellers.

Over the weekend, Nvidia sent analysts a 7-page memo firmly denying the use of vendor financing—a practice in which companies lend to customers to boost sales. The company emphasized that its books are transparent, and that customers typically pay within 53 days, far from the multi-year payment structures seen in historical accounting scandals. Nvidia also rejected comparisons to Enron and Lucent.

The scrutiny comes as prominent investors voice concerns:

• Jim Chanos suggested Nvidia could be supporting money-losing AI companies like CoreWeave and Nebius to maintain chip demand.
• Michael Burry echoed concerns about “questionable revenue practices” across the AI industry.

Nvidia maintains that demand for its chips remains extremely strong and insists it does not finance customers. Despite the company’s pushback, investor attention continues to focus not just on sales volumes, but also on how those sales are being financed, with short-seller scrutiny intensifying.