Expert questions huge AI investments from Microsoft, Amazon and Google and warns of possible 'Sugar Daddy Boomerang effect' that could potentially end very badly
Web Hosting & Remote IT Support The recent surge in cloud spending at Microsoft Azure, Amazon Web Services (AWS), and Google Cloud has caught the attention of Timothy Prickett Morgan from The Next Platform , prompting him to raise an intriguing question. How much of this seemingly impressive growth, he wonders, is actually being driven by investments in AI startups like OpenAI and Anthropic, funded by these very tech giants? Recently, Microsoft has invested $13 billion in OpenAI, Amazon has committed $4 billion to Anthropic, and Google has contributed $2.55 billion to Anthropic as well. These substantial investments may not only fuel innovation but, the tech expert warns, also inflate cloud revenues as the money circulates back into cloud spending on the infrastructure provided by these companies. "Sugar daddy" investments This situation, where nearly $20 billion has been invested in OpenAI and Anthropic, much of it likely used for cloud capacity to train and test g