Bloomberg Flags 2028 AI Bubble Risk as Debt-Fueled Circular Financing Inflates Revenue
Updated
Updated · michaeljburry.substack.com · Aug 13
Bloomberg Flags 2028 AI Bubble Risk as Debt-Fueled Circular Financing Inflates Revenue
3 articles · Updated · michaeljburry.substack.com · Aug 13
Summary
Bloomberg says AI companies are increasingly financing one another’s purchases, turning injected capital into reported revenue growth across the sector.
Debt is now playing a larger role in that loop, giving the boom a measurable cost of capital and, in the report’s view, putting the bubble on a clock.
The Bank for International Settlements had already highlighted the same pattern in its June annual report, reinforcing concerns that the practice is no longer hidden.
That dynamic matters because markets and Wall Street still reward the companies for rapid revenue expansion, even as the underlying demand is being propped up by mutual financing.