Is circular financing in AI a problem? (opens the source in a new tab)
- Over half the money invested in AI firms in 2021–25 came from other AI firms, central-bank researchers found.
- Lucent and Nortel lent to their own customers in the 1990s telecom boom, then lost both loans and sales.
- OpenAI is backing Oracle’s data-centre build with $300bn of business it hasn’t yet raised.
- 55.2%
- funding from AI firms
- 46.4%
- AI-to-AI value circular
- 1,246
- AI firms studied
Why it matters Part of AI’s booming sales is the industry funding its own demand.
Other side The researchers also see sound reasons: suppliers know their customers best, and buyers lock in scarce chips. Warning sign, or sensible financing?