Occasional Papers. 2623. The AI investment boom: capital formation, financing structures, interconnections and vulnerabilities.

Occasional Paper analysing how the artificial intelligence investment boom is being financed and the growing role of private markets. Large AI companies have sharply increased co-investments with non-bank financial intermediaries, especially private equity, and the web of interconnections may amplify vulnerabilities.

Key points

• The expansion of data centres increasingly relies on partnerships and joint ventures.
• Circular investments, cross-holdings and SPVs reduce transparency about ultimate funding sources and risk concentration.
• Calls for monitoring of leverage and the complexity of financing structures.

Who is affected

Supervisors, investors, banks and non-bank entities exposed to the AI sector.

Plain-language version

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