The companies at the center of the artificial intelligence boom are increasingly investing billions of dollars in each other — and analysts say that the increasing entanglement is adding to risk of an AI bubble.
the thing that puzzles me is the bullshit stock deals that the companies have began doing recently. essentially the first company gives a bunch of money in exchange for shares in the second company, they announce the deal causing the second company’s stock to rise, which makes the second company’s shares that is owned by the first company more valuable than the amount invested, which makes the first company’s share rise as well. then they raise investments based on the new value which completes the cycle.
im definitely missing something here or misunderstanding something because that shouldn’t be possible. i’ll be glad if someone explains it to me.
the thing that puzzles me is the bullshit stock deals that the companies have began doing recently. essentially the first company gives a bunch of money in exchange for shares in the second company, they announce the deal causing the second company’s stock to rise, which makes the second company’s shares that is owned by the first company more valuable than the amount invested, which makes the first company’s share rise as well. then they raise investments based on the new value which completes the cycle.
im definitely missing something here or misunderstanding something because that shouldn’t be possible. i’ll be glad if someone explains it to me.
that’s basically what’s happening, a great dive into the whole thing https://www.youtube.com/watch?v=CBCujAQtdfQ
Since capitalism is basically a pyramid scheme this all makes sense really, and is totally healthy and not cause for alarm in any way!
I found a YouTube link in your comment. Here are links to the same video on alternative frontends that protect your privacy: