"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,"
"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."
SoftBank and OpenAI formed a 50-50 joint venture, Crystal Intelligence, to sell enterprise AI tools in Japan. The structure pairs SoftBank's local distribution strengths with OpenAI's technology. SoftBank's status as a major investor in OpenAI raises questions about conflicts of interest and potential circular capital flows. Observers worry that the largest AI deals may reallocate funds among related parties rather than generate new economic value. The arrangement prompts doubts about the sustainability of current AI investment models, potential governance complications, market consolidation, and whether localization partnerships deliver clear incremental customer value and long-term returns.
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