Two more AI megadeals further raised concerns about a possible bubble. Anthropic announced a cloud-computing deal with Google allowing it to use a million custom-made chips, at a cost of perhaps $35 billion, while Oracle was reportedly close to finalizing the development of two major data centers, set to power OpenAI’s models, for $38 billion.
Big Tech companies say their AI revenue is increasing: Anthropic projects income of $26 billion by the end of next year. But analysts are concerned that AI investment is outstripping earnings. OpenAI has spent $500 billion on infrastructure, CNBC reported, but makes just $13 billion in annual revenue.
