AI Definitions: Circularity
/Circularity – As AI companies invest in each other, money flows in a circular fashion, from one company to another and then back again. In effect, they prop up one another’s finances, in a similar fashion to what was known as “round-tripping” during the dot-com years. The result is an inflated performance without creating profits. The hope is that this will change over time, while larger concern is that demand for AI’s new products might never catch up with the capacity the industry is building.