Recently Amazon invested $5B in Anthropic tied to a commitment for Anthropic to spend $100B in AWS infrastructure over a decade. So for $5B, Amazon now has $100B of business in the books. These circular investments is just the printing of imaginary money.
Clarification, google (and amazon) are giving anthropic acces to some of their chips (compute).
This mirrors Microsofts funding in openai, which was mostly just azure credit.
Same thing with ai companies investing with free generation tokens.
These companies aren’t providing money just sharing some resources that they would otherwise exploit for profit.
They are giving each other monopoly money blow jobs and the result is headlines and securing coordinated market domination.
The AI ouroboros grows, but the profit margins shrink.
NSFW AI bros doing their thing.
Tap for spoiler
And they still won’t turn a profit 🥰
How does this make sense?
Feeding the money laundering machine.
Money printing*
There is no money laundering involved. There are other sketchy elements associated with bubbles (circular financing), but not money laundering.
Probably like Apple and Microsoft working together in the past. Competition, but sharing some tech as well to further both sides. Or maybe it’s just money.
Pretty sure it’s again some kind of cloud credits or any other way for them to earn back the money.
