Most AI companies are financing these data centers with enormous amounts of debt. Closed loop valuations and circular financing arrangements allow the bubble to continue to grow. The Bank for International Settlements (BIS) just issued a 56-page analysis based on concerns of related party transactions, closed loop valuations and circular financing. You can read a summary and the full report, “The AI investment race,” here: https://www.bis.org/publ/work1367.htm. Whether AI revenues arrive before the structural vulnerabilities of AI financing are tested is the defining economic question of the next three years.”