BIS Study Finds Circular Investment Among AI Firms Between 2021 and 2025

Between 2021 and 2025, 28.7% of AI firms' investment deals (by deal value) targeted other AI firms, and 55.2% of incoming investments to AI firms originated from other AI firms. Furthermore, 16.1% (by deal count) and 46.4% (by deal value) of these AI-to-AI deals included commercial supply chain relationships. Authors note that these circular relationships reflect the need to secure critical inputs and information asymmetries but also entail macroeconomic risks and increased opacity.