BIS report: 55% of AI funding comes from AI peers, circular deals are huge
rohanpaul_ai · x · 2026-10-03
- The Bank for International Settlements published a report on circular financing among AI companies: between 2021 and 2025, peers supplied 55.2% of AI firms' incoming investment value, while AI investors sent 28.7% of their own deal value to AI targets.
- Circular deals are rare but big — only 16.1% of AI-to-AI deals, but with outsized sizes.
- The flow mostly runs downhill: compute and infrastructure firms initiate 73% of circular deals, backing businesses running on their own chips and cloud. A downstream slump would hit them as both investors and sellers.
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