Circular AI Boom Goes Global as Asia Windfall Funds Hyperscalers

The windfall earned by Asian chip makers is coursing through the world economy, mirroring on a global scale the circular flow of money within the AI ecosystem.

The artificial intelligence boom is generating unprecedented amounts of cash for the likes of South Korea and Taiwan, which in turn is creating a narrower version of the Asian savings glut that kept US borrowing costs low through the late 1990s and early 2000s.

That’s according to a new note from Oxford Economics examining how technology-producing economies are converting export earnings into external surpluses faster than domestic investment can absorb them. The US ...