"valuations are being boosted by variants of cross-cutting vendor financing, like recent deals between OpenAI, Nvidia, Oracle, AMD and Broadcom" [OpenAI, Nvidia, Oracle, AMD and Broadcom]
The article explicitly names the mechanism (vendor financing) and the specific actors creating circular financial flows, directly supporting the claim that interconnected deals are inflating valuations and creating systemic risk.
Reasoning from this article
The article draws an explicit parallel to pre-2008 credit derivatives: 'circular flows that echo some of the hairball of interconnections that emerged between banks and insurance companies via credit derivatives before 2008.' This is not a one-off deal but a structural pattern where the AI ecosystem's financing architecture mirrors the opacity and contagion risk of the financial crisis, with the same warning about 'unseen concentrations of risk.'