Jan Maria Szomburg: Who will pay for the AI boom? Anatomy of the capital machine in the USA

The AI boom in the U.S. is not just a technological race but a significant mechanism for capital concentration. This ecosystem is attracting vast investments, talent, and infrastructure, enhancing the U.S.'s global economic dominance. The interplay between funding and technology is creating a self-reinforcing cycle, where well-funded companies can scale rapidly, attracting more users and investors. This dynamic poses challenges for Europe, which struggles to compete with the U.S. capital market. The current AI ecosystem features a circular flow of money, where companies often play multiple roles as investors and clients. The sustainability of this boom hinges on external demand from industries outside the AI sector, raising questions about the long-term viability of current valuations and investments.