The Bank for International Settlements reveals that over 55 % of incoming investment to 1,246 AI firms between 2021 and 2025 came from other AI firms, with 58 % of intra-AI deal value involving commercial supply-chain relationships. Approximately $2.5 trillion in foreign capital, primarily from South Korea, Japan, and Taiwan, was funding US data centers by 2025. The circular funding model raises major concerns: demand signals are distorted when revenues partly stem from the sellers’ own investments, and growing interconnectedness between AI firms amplifies systemic risks. The most prominent examples include Nvidia, whose financial ties with OpenAI and CoreWeave illustrate this cross-funding model. Bloomberg compares this dynamic to the capital flows that preceded the 2008 financial crisis, noting that more than half of the sector’s financing came from within the sector itself.
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