Broadcom $42 Billion to Anthropic AI to Lease Chips - AI Bubble Keeps Growing

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Oh, lordy, lordy, lordy, lordy.

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Oh, what do you make of the AI fraud? Where are we in the AI fraud cycle? So this is coming from CNBC. Broadcom to lend Anthropic up to $42 billion to lease its chips, filing says.

Because that's how much profit there is in the AI world, right? Bernie Sanders came out. Bernie Sanders said, we need to nationalize 50 percent of these AI companies, because there is no way that the owners of these AI companies should be able to get all of these profits in, just be able to bathe in the profits, and not have any of that go back to the citizens of the United States, right? If these AI companies trained on American intellectual property, then Americans should be paid back by that. That's why Bernie Sanders wants to nationalize 50 percent of these AI companies. And then every American, under Bernie Sanders, right? Under progressive math, every American is going to get $1,000 a year, and then once every American gets $1,000 a year, then the excess money is going to go to hospitals and schools and all of that kind of stuff, because we all know how profitable artificial intelligence is, because it's profitable, right? I think it's profitable. I mean, it actually does make money. I mean, like, we could not possibly be this far down, this insane cycle and not really had any idea of if this technology can actually earn profit or anything. I think this is interesting. I've been talking about this recently. Like OpenAI, so OpenAI came out with a new $500 per month plan, and that is as it is, right? They're the first company to come out with a $200 ChatGPT plan, and so that was like the Uber version. Now they came out with a $500 ChatGPT plan. That is as it is. The interesting part, though, is that they kneecapped their $200 plan. It wasn't like they had a $200 plan, and then so many people needed more than that, they went to the $500. No, they're coming out with a $500 plan and kneecapped the old plan, which is kind of interesting. It's almost like they need more money.

It's almost like they're selling a product, and they lose money when people actually use said product. Again, we've seen this with Anthropic. So Anthropic offers discounts to large clients that pre-buy a contractual amount of tokens. And we say pre-buy, we're talking a lot of money here. We're talking about million dollars per year or 10 million dollars per year. And the interesting thing is they hit their cap. They hit the number of tokens that they've used. And you would think in any normal same company that Anthropic would just want them to keep going. They wouldn't want any blips. Interestingly enough, as soon as they hit the cap, a sales agent calls the customer and says, hey, you need to sign a new contract with us now, or as you continue going, you're going to get whatever rate we basically give you. Which is kind of weird. Again, these are the best customers you have that are literally burning millions of dollars of tokens per year, and you're going to try to strong arm them?

That seems weird. I mean, the only reason it seems like you would be doing this kind of crap is if burning millions of tokens a year actually cost you far more than you were bringing in. And I think that's kind of the interesting thing that we're seeing with these AI companies, is that they're just burning so much cash, is they burn all of their revenue, they burn all of their investor money, they burn all of their debt. They're just burning all the money, and we see no actual path to anything any same person would consider actual profitability. And so now what's going on with these AI companies is they're now getting loans directly from their vendors so they can buy products directly from their vendor.

Yeah, it's not circular fan. It's all good. It's all. No, this is exactly how all of this stuff is supposed to work.

Anthropix IPO Prospectus documents extensive partnerships with a handful of big tech firms, one standout, chipmaker Broadcom. The company's relationship with Anthropix spans compute supply, equipment leasing, and financing, giving the semiconductor company a central role in Anthropix infrastructure build out. That differentiates it from other major partners and investors such as Amazon, which primarily provide cloud infrastructure and distribution for Anthropix model Claude. As part of that complex relationship revealed in the IPO filing, Broadcom has agreed to lend Anthropix up to $42 billion to finance infrastructure spending. In turn, Anthropix stands to become the largest customer in Broadcom's bread and butter chip design business next year, making the relationship a prime example of the reciprocal spending that has animated AI skeptics on Wall Street. So Broadcom hands Anthropix $42 billion to Anthropix, so that Anthropix can then hand $42 billion back in order to buy the chips. And then that looks like revenue.