The circular money machine behind the AI boom — and its bubble risk

Analysts warn that circular financing is inflating the AI boom: Nvidia invests in OpenAI, supplies its chips and buys capacity from its data centers. One central bank found 55.2% of investment into AI firms came from other AI firms, concentrating risk and obscuring real end-user demand.

• Nvidia to invest $30B in OpenAI and guarantee up to $105B for an Ohio data center
• 55.2% of investment into AI firms came from other AI firms
• Nvidia made more than 50 AI investment deals in 2024 alone
• Chipmakers drove about 70% of S&P 500 gains in 2026