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AI billion dollar deals are feeding the same circle and raising bubble fears

Business
Published on 3 May 2026
AI billion dollar deals are feeding the same circle and raising bubble fears

Funding rivals can inflate valuations without new demand

Google and Amazon are pouring billions into AI rivals such as Anthropic, fueling a “circular capitalism” loop where firms finance each other’s cloud and chip purchases. The appetite for AI is real, but opaque deal structures blur the line between value creation and financial engineering, reviving concerns that today’s AI surge could resemble past bubbles.

  • Big tech funds AI rivals through cloud and chip purchasing loops
  • Deal opacity makes it hard to judge whether value is organic or engineered
  • Valuations may rise faster than measurable demand
  • The pattern echoes earlier tech bubble dynamics
Read the full story at The Economic Times

This summarization was done by Beige for a story published on The Economic TimesThe Economic Times

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