BIS report: 55.2% of AI companies' funding comes from other AI companies
rohanpaul_ai · x · 2026-10-03
A new Bank for International Settlements report maps circular financing among AI companies. Key findings:
- Peers supply over half the money: between 2021 and 2025, 55.2% of AI firms' incoming investment value came from other AI companies rather than outside investors, even though AI investors send only 28.7% of their deal value to AI targets.
- Circular deals are rare but big: just 16.1% of AI-to-AI deals involve firms that also buy from or sell to each other, yet those deals account for 46.4% of the money — the largest cheques often come with commercial strings attached.
- Systemic risk: the sector's funding rests heavily on its own members, so trouble at the top would spread through the rest of the industry.
More from Venture
- OpenAI details ChatGPT plugins ecosystem; launch partner says revenue keeps growing — iamrobotbear · 2026-10-03
- Selling $5,000/month managed AI agents: real pricing and playbook from operators — jacob_posel · 2026-10-03
- Claude's $1,000 paper portfolio trails the S&P 500 by 0.8 points in week one — OriginalScrubLord · 2026-10-03
- 90% of AI chip value accrues to incumbents, no OpenAI equivalent for years — menhguin · 2026-10-03
- SK Hynix's Solidigm Reportedly Weighing $150 Billion IPO, Nearly Triple Arm's — Beth_Kindig · 2026-10-03
- Live Painting at Tech Launches Is Trending: One Artist Flooded With Inquiries for Three Months — moonsandhues · 2026-10-03