I read the article, but i don't know enough about finance to understand why this is bad.

The title makes it sound dubious, but it seems like another way of seeing it is nvidia diversifying from just selling chips to operating datacenters, via a "special purpose vehicle" (spv) entity. Instead of xai selling bonds to raise money to pay for chips, they lease usage from the spv.

Seems comparable to a new datacenter company starting up to serve xai. Since nvidia is funding the new company, though, I suppose it gives the impression there's more money in the ai market than there actually is. Xai raising debt would make it more obvious.