Is AI revenue completely fake?
Coin Bureau • 1 day ago
What This Video Is About
The video examines the source of AI revenue, revealing that big tech companies like Microsoft, Amazon, and Google invest billions in AI startups, which are then required to spend the funds on renting servers and AI chips from the same companies.
Major Ideas Discussed
- Big tech companies invest in AI startups with strings attached, creating a circular flow of money.
- The investments are paid back to big tech companies in the form of cloud sales, artificially inflating demand for AI services.
- Examples of circular funding include Microsoft's investment in OpenAI and Anthropic's debt to Amazon and Google.
- The lack of organic demand and circular flow of investments create a false narrative about the AI industry's growth and potential.
What to Watch Next
The video suggests monitoring the AI industry's growth and potential, as well as the investments and contractual obligations between big tech companies and AI startups, to understand the true demand for AI services.