Deals where AI companies invest in each other, then buy from each other.
Picture two kids at a bake sale. They pass the same five-dollar bill back and forth. Sales look great, but nobody has more lunch money.
You see this around chips, cloud, and model firms. It can make growth look bigger, and bubble worries louder.
AI Bubble
Circular AI Deals can make revenue look better. They can also look more like a bubble.
AI debt financing
AI debt financing plus circular deals can make repayment pressure worse.
AI data center
Many circular deals end up tied to cloud and data center demand.
Compute-race
Money looping back can keep pushing the compute arms race.