Anthropic Is Crashing Google

Big Tech’s aggressive capital expenditure on AI infrastructure, particularly Google’s $51 billion quarterly investment in data centers, masks a deteriorating core business. Google and Amazon are artificially inflating profits by revaluing their stakes in Anthropic, a company that obscures its true financial health and faces significant funding hurdles. This circular financing model, where Big Tech funds AI startups that in turn pay for the tech giants' cloud services, creates an illusion of organic growth. With Google’s search and YouTube ad revenues slowing and free cash flow turning negative, the reliance on these paper profits is becoming unsustainable. Recent market volatility suggests a cooling of "vibe investing," as investors increasingly scrutinize the lack of transparency in AI-related spending and the questionable long-term viability of companies like Anthropic, which currently operate with massive, unstated financial commitments.