AI Circular Funding Models Echo Pre-2008 Crisis Risks: Bloomberg

Commentary: Who’s paying whom? The circular money machine behind the AI boom

It’s not clear how much of the AI boom is being driven by real, end-user demand, say academics.

Who’s paying whom? The circular money machine behind the AI boom (or bubble)

Nvidia chief executive Jensen Huang, centre, speaking at the White House. OpenAI president Greg Brockman is on the right. APImagine a company that sells you equipment, invests money in your business, and then rents back what you build with it. It’s your supplier, your investor and your customer all at once. That’s known as circular financing. Many artificial intelligence (AI) companies, including Microsoft, Amazon, Google and Nvidia, have adopte…

The New Circular AI Financing Trend Is Global and Spooky

New pools of capital are flowing into the US, but not in the way they used to.

Who’s paying whom? The circular money machine behind the AI boom (or bubble) - Stuff South Africa

Imagine a company that sells you equipment, invests money in your business, and then rents back what you build with it. It’s your supplier, your investor and your customer all at once. That’s known as circular financing. Many artificial intelligence (AI) companies, including Microsoft, Amazon, Google and Nvidia, have adopted a version of this opaque [...]

Nvidia, the AI sector's investor, supplier and financier

Who’s paying whom? The circular money machine behind the AI boom (or bubble)

AI Funding Models Link Suppliers and Customers, Raising Market Risks

Supplier investments and customer purchase commitments involving Nvidia, OpenAI and Anthropic may contribute to overvaluation and market imbalances.