AI's circular financing money loop is now a top BIS global stability risk
Nvidia and hyperscalers take equity in neoclouds, then sell those same companies chips and cloud capacity, so one dollar of investment becomes several dollars of purchases. The loop now runs through data-center construction and long-term leases, with exit clauses built in. The BIS has named it, alongside a potential AI capex bust, among the biggest risks to global financial stability. Investors should note the revenue often depends on the backstop that funded it.