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How OpenAI uses complex and circular deals to fuel its multibillion-dollar rise

(www.nytimes.com)
387 points reaperducer | 2 comments | 31 Oct 25 13:03 UTC | HN request time: 0.415s | source
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jacquesm ◴[31 Oct 25 14:01 UTC] No.45772081[source]▶
These kinds of deals were very much a la mode just prior to the .com crash. Companies would buy advertising, then the websites and ad agencies would buy their services and they'd spend it again on advertising. The end result is immense revenues without profits.
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1. TZubiri ◴[31 Oct 25 14:14 UTC] No.45772213[source]▶
I'd gander a guess that there's nothing tech specific here and that fraudulent schemes are well defined for the SEC and commercial courts to take action if something is not kosher
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2. datadrivenangel ◴[31 Oct 25 14:17 UTC] No.45772250[source]▶
It's usually not actually fraud. It's the amazon reinvesting back into growth, except the unit economics don't work if everyone cashes out at the same time, and if anyone starts cashing out the growth stops and everyone cashes out before it's too late.