Where will US AI Money Come From?

Bitcoin whales are rotating out of Bitcoin (BTC) into cash, in anticipation of the SpaceX initial Public Offering (Wall Street share market IPO) this coming Friday, June 12th. SpaceX includes xAI, which Musk founded in 2023 after disagreements with Sam Altman over the direction of OpenAI.

AI (artificial intelligence) companies are waiting in the wings for their own initial stock public offerings, coming soon, in an apparent repeat of the dot com boom, when many internet-based corporations went from privately held to publicly traded.

A big difference (from the dot com boom) is AI’s dependence on huge sums of investor capital, required to support bloated capital valuations in the hundreds of billions — trillions in fact. The publicly traded dot com boom of the late 1990’s and 2000’s had IPO capital valuations that were far less. Point being, a question frequently bandied about in public by the Tech Bros: Where is the “money” for AI going to come from?

NASDAQ has bent its own rules to include SpaceX in the NASDAQ-100 in just fifteen days, instead of the usual three month waiting period for inclusion. As such, some Index funds will have Space-X automatically added to their indexed investment portfolios, meaning that Wall Street’s large pension funds, wealth management funds, mutual funds, etc are essentially forced to invest in SpaceX, regardless of what fund managers think about SpaceX and its prospects. There is further speculation among the Wall Street Whales that Tesla will be rolled into Spacex.

Other AI corporates like Anthropic and OpenAI are planning for very large capital infusions via Wall Street initial public share offerings,[1]  to generate hundreds of billions of dollars. With Wall Street share market valuations already in massive bubble territory, and inflation running rampant, the large fund managers will either be forced to dump some existing technology shares to fund AI investment, or to borrow forward on current assets to find the “money”. The latter will require the Fed-Treasury to monetize far more dollars via US debt issuance, which is already struggling. Whether foreign actors will purchase large amounts of US Treasury debt so that the Treasury can fund US AI via its Wall Street revolving door is unknown, but all routes lead to much higher inflation.

Complicating the massive financial public debt deficit position is the US War Department’s appeal for $1.5 trillion in funding for 2027, comprising a 50% increase in military spending. That the Fed-Treasury and FIC adhere to fantasy-world concepts of Modern Monetary Theory – where the government’s Military and Financial Industry Complex may be funded to any dollar amount ad infinitum – is not in question.  The true question is how trillions in spending may be funded by US government debt instruments, when the world is no longer buying.

In summary, the US Financial Industrial Complex is planning to bloat the Wall Street Ponzi even further, because that’s what AI and US share markets represent: a massive fraudulent Ponzi scheme. It’s a US Ponzi scheme where new money must come in as the old is cashed out — especially when the Financial Industrial Complex is unable to steal the resources it requires from countries like Iran and the Ukraine, for example. Venezuela alone, even if Cuba is included in the US aggressor’s imperial design, is just not going to cut it for that level of conversion, ie resources-to-cash. The Financial Industrial Complex then must thieve funds from the American people, and whatever allied “investors” choose to continue to play the Wall Street Ponzi.

So, the next time Jensen Huang asks, “Where is the AI money going to come from?” think about how “hot” US America is, and how Wall Street hollowed out its industry and production to a fantasy land over many decades, based on fraud, usury, death, war, and horror. Because that my friends, is the future America faces.

[1]  Reportedly Google “Alphabet” is planning to issue a large tranche of new market shares to support many billions in AI funding. 

Steve Brown