How Circular Deals Are Making the AI Bubble Even Worse

How Circular Deals Are Driving the AI Boom

Artificial intelligence has rapidly become the core of the global tech economy, driven by massive investments in data centers, energy, and semiconductors.

A small group of dominant companies finances and buys from one another, creating “circular deals” that concentrate growth and risk within the same ecosystem. Although spending is soaring and infrastructure is expanding worldwide, profitability remains uncertain, with many projects operating below capacity and relying on future demand.

Rising energy costs, resource use, and external financing add pressure. While AI promises transformation, overvaluation concerns and comparisons to the dot-com bubble highlight vulnerabilities if growth expectations fail to materialize.

CHAPTERS:
0:09 Software Developers
0:37 Data Analysts
1:18 Systems Administrators
1:56 DevOps Engineers
2:34 IT Support Specialists
3:11 Database Administrators
4:27 Solutions Architects
5:03 Technical Product Managers
6:22 AI Ethics Specialists
7:30 Robotics Engineers

Produced by: Samantha Harvey
Edited by: Jacob Smith
Animation: Charlotte Brown
Additional Footage: Getty Images

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