AI Bubble's Hidden Liabilities: 75¢ of Every $1 Is Circular

AI valuations ignore circular VC revenue, hidden cyber/technical debt, agentic liability risk, and rising sovereign yields that compress discount rates.

• Circular AI capital: Ken Griffin says AI is "almost certainly a bubble"; 1% of companies drive 90% of AI spending, 80% of which comes from unprofitable VC-backed startups, with ~75 cents of every hyperscaler AI dollar being circular VC money.
• Open-source shift threatens moats: Top AI spenders are reallocating capital from closed frontier models to open-source compute; major U.S. banks built six independent data centers rather than rely on AWS/Google Cloud for auditability reasons cited by Palo Alto Networks CEO Nikesh Arora.

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