> When Anthropic spends on xAI, it benefits Google

Unless Google is directing these transactions, this is not a novel issue. (We see a similar effect with mutual funds owning most companies [1]. It's a weak effect.)

> This is how a Ponzi -style circular financing scheme typically works

No. It's potential conflicts of interest. It's not circular financing. Circular financing follows the cash. When NVIDIA invests in OpenAI so OpenAI can buy NVIDIA chips, that is circular financing.

[1] https://insights.som.yale.edu/insights/the-rise-of-the-mutua...