▲ 208 ▼ Taiwan’s chipmaking giant TSMC to invest $1B in Anthropic, OpenAI: Latest example of the AI boom’s circular financing comes as AI trade wobbles. (arstechnica.com) submitted 15 hours ago by eicker@lemmy.world to c/technology@lemmy.world 19 comments fedilink hide all child comments
[–] username_1@discuss.tchncs.de 4 points 15 hours ago (3 children) It is quite logical to invest in your big customers. permalink fedilink source hideshow 3 child comments replies: [–] psx_crab@lemmy.zip 15 points 14 hours ago Rise together, die together. permalink fedilink source parent [–] pulsewidth@lemmy.world 1 point 7 hours ago (1 child) Not as a general rule, no. Not at all. Businesses make profit selling to customers. Large customers typically give less profit as they negotiate cheaper contracts, at the benefit of being a reliable buyer. Investing the profit back into them makes little sense. Do you see farmers invest in the supermarket chains that buy their produce? Mining companies investing in Chinese ore smelters? Battery producers investing in major electronics companies? Pottery companies invest in garden center chains? Its really quite uncommon for companies to directly invest in their large customers. Whats seen more typically is the reverse: big customers investing in their major suppliers, often to negotiate better pricing agreements or to guarantee supply contracts for their critical supply chain items. The AI ouroborous is a very artificial industry structure - its just a bottomless moneypit that's doing its best to hide that fact as long as possible, "come 2030 it'll be ultra profitable bro, trust. In the meantime we'll need the GDP of a large nation every year ty'. permalink fedilink source parent hideshow 1 child comment replies: [–] username_1@discuss.tchncs.de 1 point 7 hours ago It is the very essence of capitalism. Ever heard about "corporations"? Companies that unite long manufacturing chains (often multiply ones) under one command? permalink fedilink source parent
[–] psx_crab@lemmy.zip 15 points 14 hours ago Rise together, die together. permalink fedilink source parent
[–] pulsewidth@lemmy.world 1 point 7 hours ago (1 child) Not as a general rule, no. Not at all. Businesses make profit selling to customers. Large customers typically give less profit as they negotiate cheaper contracts, at the benefit of being a reliable buyer. Investing the profit back into them makes little sense. Do you see farmers invest in the supermarket chains that buy their produce? Mining companies investing in Chinese ore smelters? Battery producers investing in major electronics companies? Pottery companies invest in garden center chains? Its really quite uncommon for companies to directly invest in their large customers. Whats seen more typically is the reverse: big customers investing in their major suppliers, often to negotiate better pricing agreements or to guarantee supply contracts for their critical supply chain items. The AI ouroborous is a very artificial industry structure - its just a bottomless moneypit that's doing its best to hide that fact as long as possible, "come 2030 it'll be ultra profitable bro, trust. In the meantime we'll need the GDP of a large nation every year ty'. permalink fedilink source parent hideshow 1 child comment replies: [–] username_1@discuss.tchncs.de 1 point 7 hours ago It is the very essence of capitalism. Ever heard about "corporations"? Companies that unite long manufacturing chains (often multiply ones) under one command? permalink fedilink source parent
[–] username_1@discuss.tchncs.de 1 point 7 hours ago It is the very essence of capitalism. Ever heard about "corporations"? Companies that unite long manufacturing chains (often multiply ones) under one command? permalink fedilink source parent