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.
How’s it work, exactly? I know rich people often don’t spend their own money. Rather, they keep it invested in assets (like businesses, homes, deals, …). When you create a deal for future payment, can it be used to increase the current value of a company (like how prospective rent income can increase the cost of an apartment complex)? So, in essence, the deal is an asset worth money simply because the people said they will honor it? …but you also called it “printing of imaginary money.” Would it be imaginary because that value doesn’t come out of anything… it just sort of wasn’t there and now is there, after a contract was signed?
Fuck man. Rich people economics…
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?
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.
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.
Pretty sure it’s again some kind of cloud credits or any other way for them to earn back the money.
