The circular money problem at the heart of AI’s biggest deals-awdailynews

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2025-11-11

The circular money problem at the heart of AI’s biggest deals

SEOUL, SOUTH KOREA – 2025/02/04: Open AI Chief Executive Officer Sam Altman speaks during the Kakao media day in Seoul. South Korean tech giant Kakao Corp. on February 4 announced partnership with OpenAI to use ChatGPT on its new artificial intelligence (AI) service joining a global alliance led by the U.S. AI company amid intensifying competition in the global AI market. (Photo by Kim Jae-Hwan/SOPA Images/LightRocket via Getty Images) | Image Credits:Kim Jae-Hwan/SOPA Images/LightRocket / Getty Images

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SoftBank and OpenAI announced a new 50-50 joint venture this week to sell enterprise AI tools in Japan under the brand “Crystal Intelligence.” On paper, it’s a straightforward international expansion deal. But SoftBank’s role as a major investor in OpenAI is raising questions about whether AI’s biggest deals are creating real economic value or just moving money in circles.

On TechCrunch’s Equity podcast, Kirsten Korosec, Anthony Ha and AI editor Russell Brandom break down why this deal has people skeptical, and what it signals about the sustainability of AI’s current investment model, and more.

Subscribe to Equity on Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod.