【Tech 24H】The Bank for International Settlements (BIS) warned in its 2026 Annual Economic Report released at the end of June that opaque financing in the AI industry amplifies financial risks, with circular financing posing a particularly prominent hidden danger. If returns on AI investments fall short of expectations, capital could rapidly retreat, triggering cascading financial risks across the broader economy. Circular financing refers to a practice where suppliers provide funds via investments or guarantees to customers, who then use those funds to purchase the supplier's products. At the end of July, Nvidia was reportedly in talks with OpenAI to provide a $250 billion financing guarantee to help the latter lease SoftBank’s data center in Ohio. The news sparked market panic over circular financing risks, driving Nvidia’s share price sharply lower and pushing its five-year credit default swap (CDS) spreads to record highs. OpenAI is in urgent need of massive computational capacity but lacks creditworthiness, sufficient cash flow and repayment capacity to borrow; Nvidia, by contrast, aims to lock in chip orders, making this guarantee essentially a large-scale seller’s credit. Such circular financing is no longer an ad hoc corporate expedient but has become a widespread practice in today’s capital markets. [ By Zhang Liyan ]