Anthropic's $42B lending deal with chip supplier raises circular-spending concerns

A major AI company is lending Anthropic $42 billion, which Anthropic will use to purchase chips from the same lender, creating a circular financial flow. This arrangement raises questions among Wall Street investors about the sustainability and transparency of AI infrastructure financing. The deal underscores the growing interdependence between AI model developers and hardware providers, but its financial structure may signal overvaluation or risk in the AI sector.