A report by the Bank for International Settlements (BIS) analyzed funding flows among 1,246 AI companies from 2021 to 2025. The data reveals that over 55% of incoming investment for these firms originated from other AI companies, while 28.7% of their outbound investments were directed toward the same sector.
The research highlights that 58% of intra-AI deal value is linked to commercial supply-chain relationships. Notable examples of such financial ties include the relationship between Nvidia and OpenAI, as well as Nvidia's connection to cloud infrastructure provider CoreWeave.
The circular funding model has drawn significant foreign capital to support US data center construction. By 2025, approximately $2.5 trillion in foreign capital from economies including South Korea, Japan, and Taiwan was directed toward these projects.
Analysts warn that this interconnectedness may distort demand signals, as revenue growth can be inflated by capital recycled through investments. The current trend is being compared to the dynamics observed prior to the 2008 financial crisis.
