What is the circular relationship between major cloud hyperscalers and AI labs?
Replied byEdward Zitron
Founder & CEO at EZPR
Niche: Agencies
Revenue: Not Publicly Disclosed/month
Location: Las Vegas, Nevada, United States
Started: 2013
Most reported AI revenue across the largest cloud providers comes directly from funding two unprofitable companies, OpenAI and Anthropic. Cloud hyperscalers inject billions of dollars into these labs, which the labs immediately return by purchasing cloud compute credits. Outside of these subsidized entities, actual global enterprise spend on generative software remains very modest compared to the trillions invested in capital expenditure.
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