Oh it gets worse than that, the money which caused all of this by OpenAI was taken from Japanese banks at cheap interest rates (by softbank for the stargate project), and the Japanese Banks are able to do it because of Japanese people/Japanese companies and also the collateral are stocks which are inflated by the value of people who invest their hard earned money into the markets
So in a way they are using real hard earned money to fund all of this, they are using your money to basically attack you behind your backs.
I once wrote an really long comment about the shaky finances of stargate, I feel like suggesting it here: https://news.ycombinator.com/item?id=47297428
Maybe you can argue that yakuza is making hard earned money but imo, they are doing illegal activities within the law and are doing something more closer to extortion.
Ironically, in a sense, what AI did in a sense is also an extortion.
One is just legal (barely, I am not even sure how or why), the other isn't. That was my intention to highlight when I said hard earned money.
If that's the plan (there is no plan) then it expires at some point, because it's a spiral and such spirals always bottom out.
Of course they will - if that happens all these AI token providers won't have a use for all that hardware they bought. You'll be buying used H100s and H200s off eBay for pennies on the dollar.
That's ridiculous, "infinite money" isn't a thing. They will spend as much as they can not because they want to keep local solutions out, but because it enables them to provide cheaper services and capture more of the market. We all eventually benefit from that.
My reading of GP is that he was being sarcastic - "infinite amounts of circular fake money" is probably a reference to these circular deals going on.
If A hands B investment of $100, then B hands A $100 for purchase of hardware, A's equity in B, on paper, is $100, plus A has revenue of $100 (from B), which gives A total assets of $200.
Obviously it has to be shuffled more thoroughly, but that's the basic idea that I thought GP was referring to.
