Zoe Anderson: “These AI companies aren’t just investing in each other — they’re increasingly…”
Zoe Anderson @zoeanderson ·
These AI companies aren’t just investing in each other — they’re increasingly funding the same closed loop. One company raises capital from another, uses that money to sign massive compute contracts with a third, and that third company turns around and buys chips, capacity, or infrastructure from the original investor. Equity, debt, purchase commitments and capacity guarantees all reinforce the same network. That works as long as everyone keeps paying. The real risk isn’t that AI suddenly becomes useless. It’s that one or two major nodes can no longer honor their commitments. A lab cuts compute spending, a cloud provider delays a buildout, a data-center operator misses utilization targets — and suddenly someone else’s “revenue” becomes a bad receivable, someone else’s backlog gets repriced, and someone else’s capex no longer has a customer behind it. That’s why circular financing can make the boom look stronger than the underlying end demand actually is. Once a few large firms start missing payments, the problem doesn’t stay with those firms. It propagates through the entire network.
Belief return
+4.12% since launch
At launch
- SQQQon 40%
- GLD 20%
- XAUT 15%
- XAUm 10%
- SGOV 15%