The fairy tale about big USA tech giant's foray into AI and data centers is falling apart and about to collapse. The round tripping investments, or circle investing, of tech giant's investments in each other's turf is at its tail-end. The rope is at the end of its tethers. Now, the USA is about to use a new scam to screw would be small investors to bail out the billionaires controlling SpaceX, Open AI and Anthropic, using IPOs of trillions to lure the public into a black hole.
The USA is changing the rules of how 'too large to fail' companies can get into NASDAG just because of their size, by removing the qualifying criteria of corresponding background sustainability and profitability to boot. In the process, IPOs enabled them to soak up public money to bail out the big owners and insiders. I think the writing is on the wall that AI and data center frenzy is a dying horse. But they are using a new whip to flog a dying horse. USA AI and data centers cannot compete profitably against Chinese Ai companies, more so against open-source ones given the monstrous investments of hundreds of billions already sunk into the Ponzi scheme. Now the only way for bailing them out is through big IPOs of trillions that some in the public will rush in to make a fast buck.
SpaceX profitability relies on Starlink, the satellite business of Elon Musk, while SpaceX itself cannot be said to be sniffing profitability. OpenAI and Anthropic had never tasted profitability in their history yet allowed to raise trillions of dollars from the public, just hyping on the AI and data center potential. Any other company outside the USA doing that would be taken to task as fraudulent and sued until they have no pants to wear.
China has seen the unravelling faster than most and is forbidding Chinese investors from throwing money into the USA's IPO black hole. If China does that, other countries must take careful note. China was the first country to ground and refusing to fly the Boeing 737Max when two new planes just dropped from the sky.
Anonymous
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The AI and data center shit is about to hit the fan and SpaceX, OpenAI and Anthropic are rushing out their IPOs to cash in before the unravelling.
The big buyers, by default, would be the employer sponsored 401k retirement savings plan and retirement funds, where trillions of US$ are sitting around and available for scalping. This has been a warning by many about how the USA Government and the elites can get their hands on those funds for bailing out too big to fail entities. It is happening.
The IPO frenzy, coming one after another cannot be co-incidental. It is coordinated to get their hands on the savings of USA citizens to bail out the billionaires. Common sense will tell us that money suck up by SpaceX IPO will leave less public money for OpenAI and Anthropic to scalp. But the situation of the AI and data centers are dire with money available for circular investing among the top tech giants exhausted. This is the reason for the desperation to have IPOs. Moreover, the USA Government has changed the rules of the IPO game for the big, too big to fail, tech giants. Any crash of their AI and data center investing is going to bring down the whole house of cards.
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