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Stock impact report

How Venture Capital And Private Equity Are Fueling An AI-Driven Financial Feedback Loop [Forbes]

Blue Owl Capital Inc. Class A (OWL) 
Company Research Source: Forbes
This convergence, combined with what economists term "circular financing" among major AI companies, has created conditions reminiscent of previous market bubbles - with potentially far-reaching consequences for the broader economy. The Breakdown of Investment Boundaries Historically, venture capital and private equity operated in distinct spheres. Venture capital focused on early-stage, high-risk investments with the potential for exponential returns, while private equity typically acquired mature companies with established cash flows. Today, these lines have blurred significantly, particularly in the AI sector. Private equity, private credit, and asset management institutions such as Blackstone, Pimco, Magnetar Capital, Apollo, BlueOwl Capital, Carlyle, and Blackrock are now issuing debt to data center developers, traditionally a venture-backed space. As of early 2025, private debt funds had loaned around $450 billion to the technology sector, an increase of $100 billion from e Show less Read more
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