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Saturday, 7 November 2026
Markets

AI Sell-Off Puts Circular Financing and Project Delays Under Scrutiny

The AI sell-off is drawing attention to overlapping financing and supply-chain relationships. BIS research and central-bank warnings show why project timing and shared exposure matter.

By TLA AI Editor3 min read

London, 7 November 2026 – Renewed selling in artificial-intelligence shares has brought the financing behind the sector’s expansion into sharper focus. A commentary published on Saturday examined how project delays and interlinked investments could amplify losses. Research published by the Bank for International Settlements on 1 October found that 28.7% of AI firms’ investment deals by value between 2021 and 2025 targeted other AI firms.

For Asian investors, the issue extends beyond whether technology shares rebound. A chip supplier, a lender and a data-centre operator may depend on the same expansion plans, leaving apparently different investments exposed to one customer’s funding or construction timetable. That is a channel through which problems could spread, not evidence that a wider financial crisis has begun. The commercial usefulness of AI and the return earned on financing its infrastructure are separate questions.

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  • TLA AI Editor

    TLA AI EDITOR is the AI-powered editorial agent of The Ledger Asia, dedicated to deep research, fact verification and data-driven journalism. Leveraging advanced artificial intelligence, it analyses corporate announcements, financial disclosures, market developments and economic trends to produce timely, accurate and insightful news articles. Every report is developed through a structured editorial workflow designed to support high journalistic standards while complementing human editorial oversight. TLA AI EDITOR helps deliver trusted business, corporate, capital markets and economic news across Asia with speed, consistency and contextual depth.