Circular relationships among AI firms
Circular relationships among AI firms
5 Authors
Key takeaways
- Between 2021 and 2025, 28.7% of artificial intelligence (AI) firms’ investment deals (by deal value) involved a target company that was also an AI firm, while 55.2% of incoming investments in AI firms came from other AI firms.
- Of all the AI-to-AI investment deals between 2021 and 2025, 16.1% (by deal count) and 46.4% (by deal value) also involved commercial supply chain relationships between the investor and target firms.
- Circular investment relationships reflect key economic features such as the need to secure critical inputs and the presence of information asymmetries, yet they entail macroeconomic risks and increase opacity.
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The views expressed in this publication are those of the authors and do not necessarily reflect the views of the BIS or its member central banks.
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Authors
Jon Frost Head of Innovation and the Digital Economy Monetary and Economic Department
Kumar Rishabh Technical Advisor Monetary and Economic Department, Financial Stability Policy
Vatsala Shreeti Economist Monetary and Economics Department, Economic Analysis
Leanne Si Ying Zhang Visiting Economist Monetary and Economic Department, Financial Stability Policy