Here is money printing scheme that looks to be at work:
Initial situation:
* Big corp M has X$ in cash where X is huge
Big Corp M invest X$ in AI startup O, with a provision that O needs to use most of the money to buy cloud infrastructure from M to power AI models.
End situation:
* Big corp M has X$ wort of shares in O, the value of which will rapidly grow
* Big corp M cloud division has ~X$ in extra revenue
The deal automatically turns X$ into ~2X$ in books.
Rinse and repeat with next round deals and next AI startups. The big corps are reporting increased cloud divisions revenue from AI spent, but it is their own investment money flowing back to cloud divisions.
> The deal automatically turns X$ into ~2X$ in books.
No it doesn't. The revenue it gets back is valued only at a fraction, because it's only worth its profit. Revenue != profit.
And your "the value of which will rapidly grow" is doing all the work here. That's not guaranteed. It might collapse as well.
It's not money printing at all. It's tying up cash long-term in exchange for a much smaller amount of profit short-term. Which is risky but entirely normal.
To be precise I wrote 'in books' which record also revenue, not just profits. Increasing cloud revenue is one of the things that drives big corps share price up, the missing bit is that this revenue comes from big corps themself. The growth investors mantra is that as long as revenue is increasing rapidly, they don't care much about today's profits, this is why so many unprofitable companies have crazy high valuation.
Initial situation:
* Big corp M has X$ in cash where X is huge
Big Corp M invest X$ in AI startup O, with a provision that O needs to use most of the money to buy cloud infrastructure from M to power AI models.
End situation:
* Big corp M has X$ wort of shares in O, the value of which will rapidly grow
* Big corp M cloud division has ~X$ in extra revenue
The deal automatically turns X$ into ~2X$ in books. Rinse and repeat with next round deals and next AI startups. The big corps are reporting increased cloud divisions revenue from AI spent, but it is their own investment money flowing back to cloud divisions.