Monday, October 13, 2025-A surge of intertwined investments among major tech firms is sparking fresh fears of an AI-driven market bubble in Silicon Valley.
Companies like Nvidia, OpenAI, Oracle, and CoreWeave have entered into multi-billion-dollar partnerships where they simultaneously invest in and buy from each other, creating what analysts describe as “circular deals.”
These complex financial arrangements make revenues appear inflated, masking how much real demand exists for AI products and infrastructure. Industry observers warn that such interdependence could leave the sector vulnerable if enthusiasm fades or funding slows.
Despite optimism about AI’s long-term potential, economists and regulators are urging caution. They note that if valuations continue to rise faster than profits, the correction could rival the dot-com crash testing the resilience of Silicon Valley’s latest technological gold rush.
0 Comments