While this does look on paper a bit like “the three hour cruise, the three hour cruise“ of Gilligan’s Island… A difference involves the true monetizable productivity gains possible with this now–irreversible technology implementation. The commercial paper bundled with a social-engineering experiment and Dodd-Frank regulations were clearly not creating a monitizable productivity gain.
That said, it’s hard to imagine the snake eating its tail, the Ouroboros, isn’t going to run out tail and have to eat its own head at some point. Of course some individuals will be incredibly wealthy by that time.
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Alex Issakova
Everyone says AI is the next internet. I say it’s the next subprime mortgage crisis.
Because what’s driving this boom isn’t just innovation. It’s circular finance.
Bloomberg recently mapped out what might be the most revealing pattern in AI so far:
OpenAI buys Nvidia chips →
Nvidia invests in OpenAI →
Oracle rents Nvidia chips to OpenAI →
OpenAI gets equity in AMD.
It’s an elegant loop. And a dangerous one.
Money isn’t flowing through the system to build products.
It’s circulating within it to inflate balance sheets.
💰 The AI Money Loop
Every transaction boosts everyone else’s valuation.
→ OpenAI’s spending becomes Nvidia’s revenue.
→ Nvidia’s investment becomes OpenAI’s capital.
→ Oracle and AMD join in, and stocks surge again.
No new customers. No new cashflows. Just a bigger collective story.
It’s not innovation, it’s financial feedback.
🏭 When Tech Starts to Look Like Industry
We’ve seen loops like this before.
Automakers share engines.
Oil giants share pipelines.
Chipmakers co-invest in fabs.
But those loops were built for efficiency.
The AI loop is built for excitement.
Training frontier models costs billions — so firms co-finance infrastructure, secure scarce chips, and invest in one another to protect supply.
🏚 Echoes of 2008
In the subprime era, banks sold belief in endless housing demand.
Today, Big Tech is selling belief in endless compute demand.
Optimism becomes collateral.
Valuation becomes proof.
The big difference?
2008 was fuelled by debt.
The AI loop is fuelled by equity. Confidence instead of credit.
But if model costs outpace revenue or enterprise budgets cool, billions in paper value could vanish overnight.
⚡ Why It Matters
The AI economy now looks less like software and more like finance.
What used to be move fast and break things
is now build fast and finance each other.
It’s a brilliant machine for generating confidence
until someone asks where the real cashflows are.
♻️ If this shifted your perspective, share it. Someone in your network needs this today.
🔔 Follow Alex Issakovafor more reflections on AI, power, and the future of work.
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