Science · 18 views
Who's paying whom? The circular money machine behind the AI boom (or bubble)
Imagine a company that sells you equipment, invests money in your business and then rents back what you build with it. It's your supplier, your investor and your customer all at once.
AI Summary
A business model in which a supplier sells equipment, invests in the buyer’s operations, and then rents back the products made with that equipment is used by several AI firms. The arrangement makes the supplier simultaneously a vendor, investor and customer. Microsoft, Amazon, Google and Nvidia have adopted this opaque financing approach for their AI ventures. The model keeps the companies involved in a continuous cycle of investment and revenue from the same assets.
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