MoneyAugust 20, 2026via The Decoder
China now has its own AI circular financing scheme
Why it matters
China has engineered a state-backed circular financing model for AI hardware: robotics companies sell to government training centers, which then sell generated data back to the manufacturers. It's a structural workaround that sustains valuations and demand in ways that would trigger regulatory scrutiny in the West — and it raises questions about the durability of those inflated multiples.
Key signals
- Unitree Robotics IPO valuation: ~$50 billion
- IPO gain: 460%
- Exchange: Shanghai
- Business model: state-backed training centers buy robots, sell generated data back to manufacturer
- Comparison: echoes Nvidia circular-financing criticism in US
- Source: Financial Times investigation
The hook
$50B valuation. Unitree Robotics just IPO'd in Shanghai, but an FT investigation reveals state-backed centers are buying the robots and selling the data back — a circular financing scheme that mirrors Nvidia criticism in the US.
Unitree Robotics rose 460 percent in its Shanghai IPO, hitting a valuation of around $50 billion. But an FT report shows much of the demand for its robots comes from state-backed training centers that buy the machines and sell the resulting data back to the manufacturers, a circular business model t…