Circular Investments, ABS, Everything… This AI Bubble is Looking Exactly Like the Financial Crisis

Opaque Cross-Ownership and Overlapping Chains of Wealth… Déjà Vu of the Financial Crisis -Ezra Karma, The Atlantic Reporter

https://www.theatlantic.com/economy/2025/12/nvidia-ai-financing-deals/685197/

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While the name ‘CoreWeave’ might be unfamiliar to the general public, it has emerged as the darling of the tech industry this year. However, the company's spectacular rise symbolizes just how complex, interconnected, and potentially catastrophic the business methods of today's AI firms have become.

CoreWeave's initial public offering (IPO) in March was the largest technology startup IPO since 2021. Since then, its stock price has more than doubled, outperforming even the returns of the so-called ‘Magnificent 7’ Big Tech companies. Wall Street praises CoreWeave as the core engine of the AI revolution. This reputation is seemingly warranted, given the partnerships it has recently signed, including $22 billion with OpenAI, $14 billion with Meta, and $6 billion with Nvidia.