The circular money problem at the heart of AI’s biggest deals

This week, SoftBank and OpenAI unveiled their latest collaboration—a 50-50 joint venture named 'Crystal Intelligence' aimed at launching enterprise AI tools in Japan. While the announcement seems like a typical move for international expansion, it raises significant concerns regarding the actual economic impact of such ventures. SoftBank's substantial investment in OpenAI prompts skepticism about whether these large-scale AI deals are genuinely generating value or merely redistributing funds within a closed loop. On a recent episode of TechCrunch’s 'Equity' podcast, hosts Kirsten Korosec, Anthony Ha, and AI editor Russell Brandom dissect the implications of this venture. They delve into the broader questions surrounding the sustainability of the current investment landscape in AI, highlighting the potential issues that may arise from such financial maneuvers. Listeners can catch the full discussion on platforms including Apple Podcasts, Overcast, and Spotify, and can also follow the 'Equity' podcast on social media platforms like X and Threads under the handle @EquityPod.