Circular financing in the AI sector refers to a tightly interlinked system of equity investments, compute commitments, guarantees, and off-balance-sheet structures among chipmakers, hyperscalers, AI labs, and data-center operators. Money and obligations circulate among a small group of counterparties, accelerating infrastructure buildout while amplifying downside risks if end-user monetization falls short.
How It Works.…
AI bubble risks are elevated as of mid-to-late 2026, driven by an unprecedented capital expenditure boom outpacing near-term monetization, high valuations, circular financing, and competitive pressure from low-cost Chinese open models. Official warnings from institutions like the Bank for International Settlements highlight parallels to historical overinvestment cycles, while real technological progress and strong current revenues…
Bitcoin surged to $76,800-$77,600, gaining 6-8% in 24 hours and 20% for the week. The market saw over $4 billion in 24-hour liquidations, marking the most violent short squeeze of 2026. Combined BTC/ETH ETF inflows exceeded $800 million, indicating massive institutional entries. The funding rate shifted from negative to positive, signaling a return of long…