AI Bubble Fears Grow as Big Tech Allegedly Pays Itself in Cloud Loop
BeInCrypto
Critics argue Big Tech is fueling an AI bubble by recirculating capital into startups that pay it back through massive cloud service fees.Summary
Major tech companies like Microsoft, Amazon, and Google are facing scrutiny over a circular funding mechanism where they invest billions into AI startups like OpenAI and Anthropic, only for those startups to return the capital as cloud service fees. This practice allows tech giants to inflate their revenue and earnings figures while masking the true, unsustainable costs of AI development. As ordinary enterprises struggle with high operational expenses and AI tokens show increased correlation with the Nasdaq, analysts warn that this 'round-trip' funding creates an artificial bubble that may pose significant risks to the broader market, including cryptocurrency assets.
(Source：BeInCrypto)