Nikolaenko et al. claims that in ridge regression $A\beta=b$, where $A=X^TX+\lambda I \in R^{d\times d}$ and $b=X^Ty \in R^d$ (page 3), it can be decomposed into:
$$A=\sum\limits_{i=1}^{n}A_i+\lambda I \text{ and } b=\sum\limits_{i=1}^{n}b_i$$
where $A_i=x_ix_i^T$ and $b_i=y_ix_i$ (page 4)
However, I think it's not true because $X^TX\neq\sum\limits_{i=1}^nx_ix_i^T$. Consider a simple example:
They are very good scholars so I assume I either miss something in the paper or had wrong conclusions somewhere.
So, is the decomposition valid?