Bloomberg examines how circular funding is fueling the AI boom

AI firms investing in each other are speeding up the data center buildout while raising questions about demand signals and global imbalances The AI boom has a funding engine, and a good chunk of it appears to be AI companies writing checks to other AI companies. Bloomberg reporting from October 12-13, 2026, describes a circular funding model that is accelerating infrastructure spending. The same model may also be deepening financial imbalances that look uncomfortably familiar to anyone who remembers 2008. The basic loop is simple to sketch. Company A invests in Company B.

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