My understanding is that it's not about the money itself but the model:

- you fund a new company and sign long terms contracts with it - this new company uses the money you gave it and a lot of debt (backed by long term contracts) to build datacenters and buy a lot of GPU - your figures look great

What happens when they run out of debt or funds? If they reach some kind of profitability it's not a big deal, but if not ...

EDIT

Forget to mention the buyback of unused capacity problem: what happens to your figures when you have to buy back tons of unused GPUs?

Yes, circular financing is not by itself a problem.

It being that size, lasting for that long, and the total lack of viable products created by it are the problem. Financing only adds leverage, that makes every loss or profit larger.

> If they reach some kind of profitability it's not a big deal, but if not ...

What is the end of this sentence?