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?
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…