Circular AI Deals Spread to Asia, Widening Contagion Risk

AI’s Circular Financing Spreads to Asia, Widening Contagion Risk Alarm bells are going off as investors raise concerns. This article is for subscribers only. Welcome to Bloomberg’s AI Today newsletter. Every weekday we’ll break down artificial intelligence’s threats and opportunities for businesses, workers, finance and economies. Sign up now if you’re not already on the list. Circular financing deals — where money invested in an AI company ultimately flows back to the investor through technology purchases — are taking hold in Asia, widening the potential fallout from a financing model that risks overstating demand, inflating valuations and leaving lenders holding more risk.