SCMP · 7 Sep, 12:30 · Artificial Intelligence briefing

Opinion | AI titans’ ‘circular deals’ are starting to look like ‘daisy chains’

Recent reports indicate that major artificial intelligence companies are engaging in increasingly complex, interlocking agreements regarding data and infrastructure.

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The briefing

The story
in brief.

What happened, who it affects, and why it landed on our intelligence desk — in plain English, sixty seconds or less.

Recent reports indicate that major artificial intelligence companies are engaging in increasingly complex, interlocking agreements regarding data and infrastructure. These arrangements, initially described as circular deals, are evolving into intricate daisy chains that obscure the true flow of resources and influence. For professionals, this signals a shift towards opaque supply chains in the tech sector. Understanding these structural dependencies is crucial, as they impact market stability and competitive dynamics. This development highlights the growing entanglement of AI giants, suggesting that future industry shifts may be driven by these hidden contractual relationships rather than pure technological innovation alone.

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Indicative index of skill mentions in professional job postings for the field this story moves (2019 = 1)

Your move

What this means
for your career.

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You must now look beyond technical proficiency to understand the strategic and legal frameworks governing AI deployment. Professionals in compliance, risk management, and corporate strategy should prioritise skills in contract analysis and regulatory oversight. As these daisy chains complicate liability and data provenance, expertise in navigating complex stakeholder ecosystems becomes invaluable. You should actively seek training in governance and ethical AI implementation. Do not ignore the legal implications of data sourcing. Instead, position yourself as a bridge between technical teams and executive leadership, ensuring your organisation remains compliant amidst these opaque arrangements. Focus on building resilience against supply chain disruptions in the AI sector.

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Indicative salary uplift in the fields matched to this story
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