How Circular Deals Are Driving the AI Boom

B2 – Upper Intermediate

Artificial intelligence is attracting massive investment from some of the world’s biggest companies. Billions of dollars are being poured into data centers, energy infrastructure, and advanced chips, with many investors treating AI as a growth engine that cannot fail. At the same time, questions are growing about profitability, rising costs, and whether this surge could turn into another tech bubble similar to the dot-com crash.

Watch the full video to explore how money is moving through the AI industry, why some experts are worried, and what’s at stake if expectations don’t match reality.

Vocabulary Questions

  1. What does “circular deal” mean in the sentence, “A precarious investment strategy is emerging multi-billion dollar circular deals.”? Use it in a sentence.
  2. What does “to bank on something” mean in the sentence, “Investors are really banking on incredible growth”? Use it in a sentence.
  3. What does “canary in the coal mine” mean in the sentence, “And these AI data center companies, they are the kind of canary in the coal mine”? Use it in a sentence.

Discussion Questions

  1. Why do you think so many investors are willing to spend billions on AI even though many projects are not yet profitable?
  2. How is the current AI boom similar to the dot-com bubble, according to the video?
  3. What risks do ordinary people face if an AI bubble were to burst?
  4. Do you think large technology companies are becoming “too big to fail”? Why or why not?
  5. In your opinion, can AI still succeed as a technology even if some companies fail along the way?
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