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

SoftBank and OpenAI introduced a new 50-50 joint venture this week to promote enterprise AI instruments in Japan beneath the model “Crystal Intelligence.” On paper, it’s an easy worldwide growth deal. However SoftBank’s position as a significant investor in OpenAI is elevating questions on whether or not AI’s greatest offers are creating actual financial worth or simply shifting cash in circles. 

On TechCrunch’s Equity podcast, Kirsten Korosec, Anthony Ha, and AI editor Russell Brandom break down why this deal has folks skeptical, and what it indicators in regards to the sustainability of AI’s present funding mannequin, and extra.

Subscribe to Fairness on Apple Podcasts, Overcast, Spotify and all of the casts. You can also comply with Fairness on X and Threads, at @EquityPod.