The post Wall Street deals with circular money machine risks as AI firms fund demand boom appeared on BitcoinEthereumNews.com.

Wall Street is facing a strange kind of storm, where the same companies behind the AI boom are also now funding the very demand that brings them profits, and it is starting to look less like collaboration and more like a circular money machine. We’re not quite sure that’s totally legal. But according to the Financial Times, analysts are afraid this loop could at the very least turn into an AI bubble, echoing the excess of the dot-com era, or perhaps even worse. The most striking example came in late September, when Nvidia announced plans to invest up to $100 billion in OpenAI. The move would give Sam Altman’s ChatGPT maker even more access to Nvidia’s chips to train and run its next generation of models. That’s not all. Nvidia has also poured $6.3 billion into CoreWeave, a data center operator it already owns 7% of, and is reported to have invested another $2 billion into Elon Musk’s xAI. Meanwhile, OpenAI has expanded its own network, cutting deals with Oracle, CoreWeave, and AMD, and on Monday tapped Broadcom to build its first in-house AI processors. AI giants build circular investments Wall Street analysts say this new pattern shows how AI infrastructure providers are turning their customers into investment targets. Nvidia and others are putting money directly into the firms that rely on their hardware, and those firms are, in some cases, reinvesting right back into the suppliers. It’s a feedback loop powered by capital instead of consumers. Blackstone president Jonathan Gray called it a top concern for investors. Speaking at the Financial Times Private Capital Summit in London, Jonathan said his firm now treats AI risk as a key part of every deal review. “We’ve told our credit and equity teams: address AI on the first pages of your investment…

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Filed under: News - @ October 19, 2025 2:27 pm