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Company sells equity -> buys product with proceeds
Result: equity holder is earns a portion of future profits & supplier books income

Company sells equity to supplier -> buys supplier product with proceeds
Result: supplier earns a portion of future profits & supplier books income

Why are so many people insisting there is something fraudulent about this, as if this is some kind of cascading cross default housing bubble scheme? Yes, if it turns out that AI isn't as profitable as expected these deals will turn out poorly. That's what equity investment is. It's an investment in future profits, which may be zero.

Tech firms invest hundreds of billions of dollars a year into new technology (companies that did not do this used to be the target of complaints: "companies line shareholder pockets instead of investing in the business" ) . That is what is happening. They are investing a lot into AI related technologies. That doesn't inherently make it a bubble and reasoning by analogy to lay retellings of past economic events is not actually an argument.

IMPORTANT EDIT:
After looking into the details of this deal, it doesn't even appear to be one of the many equity financing deals that other companies have announced. The extent of the details released is that this is just a straight up contract for services. This is literally traditional income. No equity stake involved. The income will be booked over the life of the multi-year deal as it comes in, like any contract.