this post was submitted on 02 Dec 2025
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The Algorithm That Detected a $610 Billion Fraud: How Machine Intelligence Exposed the AI Industry’s Circular Financing Scheme (substack.com)
submitted 4 days ago by Thomas2024@feddit.org to c/technology@lemmy.world
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[–] Croquette@sh.itjust.works 4 points 3 days ago (1 children)

Because higher stock value means more collateral for debt.

You'd be surprised on how much debt is used in even small companies.

[–] ctrl_alt_esc@lemmy.ml 2 points 3 days ago (1 children)

I'm aware, usually investments are not financed (primarily) with debt though.

[–] Croquette@sh.itjust.works 1 points 2 days ago

Having the capabilities to take on debt helps to garner investments.

You can do a joint venture, take on a bit of debt but get more money of it.

And we've seen many mega corpos finance their venture throught debt (see Uber business model).

So I'd say that it was true in the past, but corpos are getting bolder.