# Tech giants like Google and Amazon are investing billions in AI rivals like Anthropic.

*genai · news · 2026-05-03 · The Economic Times*

## Key points

- Google and Amazon are investing billions in Anthropic, a direct competitor, while selling it cloud services.
- Anthropic receives investments from rivals, then uses that money to buy their cloud and AI chips.
- These circular investments inflate company valuations and reported revenues without money really leaving the ecosystem.
- The IMF has warned that such circular AI financing increases systemic risk and inflates interdependence.

**Companies:** Google, Amazon, Microsoft, Nvidia, Anthropic
**Countries:** United States

[Read the full story on The Economic Times](https://economictimes.indiatimes.com/news/international/business/is-the-ai-boom-eating-its-own-tail-the-strange-economics-of-billion-dollar-deals/articleshow/130726861.cms)

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