Janus Henderson Manager Flags AI 'Circular Funding' Risk but Sees Nvidia's Exposure Manageable on July 27

According to Bloomberg, Janus Henderson fund manager Alison Porter said on July 27 that the AI industry is entering a "circular funding" phase: growing AI applications demand more computing power, which in turn drives tech giants to increase capital expenditure continuously.

Porter noted that Nvidia is helping advance AI infrastructure through financing mechanisms, with current risks manageable given Nvidia's strong balance sheet. However, the real concern lies in whether AI companies like OpenAI can grow revenue faster than their capital spending.