[JumpCrisscross]

> When Anthropic spends on xAI, it benefits Google

Unless Google is directing these transactions, this is not a novel issue. (We see a similar effect with mutual funds owning most companies [1]. It's a weak effect.)

> This is how a Ponzi -style circular financing scheme typically works

No. It's potential conflicts of interest. It's not circular financing. Circular financing follows the cash. When NVIDIA invests in OpenAI so OpenAI can buy NVIDIA chips, that is circular financing.

[1] https://insights.som.yale.edu/insights/the-rise-of-the-mutua...

[SecretDreams]

I think it depends on how you view the payout google will get when these companies IPO and give Google exist liquidity and a nicer looking balance sheet, if needed, either or.

[JumpCrisscross]

> it depends on how you view the payout google will get when these companies IPO and give Google exist liquidity and a nicer looking balance sheet

Google has a fantastic balance sheet with or without these investments. None of the recent deals have uniquely enabled an IPO. So they'd be playing to increase their stakes' value by a few points ahead of a dump, a dump that would almost certainly wipe out much more than they'd stand to gain by trying to make someone else a dollar so they get nickels and dimes out of it.