The AI circular economy arrives in China

Unitree Robotics recently saw its value jump to fifty billion dollars after a massive stock market debut in Shanghai. The company sells its robots to state-funded training centers. These centers then sell the data generated by the robots back to the manufacturer.

This cycle creates a loop of artificial demand that keeps the business running. Critics point out that the robots are essentially buying their own revenue. It is a system that keeps cash flowing inside a closed group of state-linked buyers.

This model looks very similar to recent concerns about how companies in the West inflate their AI success. It raises questions about how much of this industry is truly growing through real customers. For now, the numbers look great on paper.