AI circular funding model poses revenue reversal risk

IMF Warning: "Circular Funding" in the AI Sector Reaches $1.4 Trillion. Major tech and chip companies invest in their customers and provide debt guarantees, with funds flowing back into their revenue, creating a revolving structure. Approximately 17 transactions have been disclosed, involving NVIDIA, OpenAI, Oracle, Microsoft, Amazon, Google, Anthropic, among others. This circular dependency relies on end consumers continuously paying large sums for AI services. If monetization falls short of expectations, AI model companies and new cloud providers expanding through borrowing may be the first to fail, subsequently triggering a chain reaction of risks related to equity investments and lease guarantees by major tech firms.