AI’s Circular Investment Pattern Raises Bubble Concerns Amid Record Deals
The AI industry’s complex web of reciprocal investments between tech giants and startups is drawing scrutiny from Wall Street analysts. Some experts suggest these circular deals, while potentially beneficial, bear troubling similarities to previous market bubbles.
The Rise of Circular AI Deals
The artificial intelligence sector is witnessing an unprecedented pattern of “circular” investment deals that connect major technology companies, chip manufacturers, and AI startups in complex financial arrangements, according to recent analysis. Sources indicate these interconnected transactions have become increasingly common as companies seek to secure access to scarce AI resources while simultaneously investing in potential future competitors or partners.