There’s a broader issue here that goes beyond OpenAI and Anthropic. In the last couple of years US economic growth has been driven almost entirely by AI and data center spending. It may not be too outlandish to claim that we are in a recession right now but it is hidden by the AI bubble and all the underlying circular financing.

So it isn’t just the two companies and their investors that have a vested interest in keeping the music playing, it’s the entire US government. No surprises then that government officials are now openly accusing Chinese companies of cheating. Sanctions and tariffs are probably going to follow.