Comment on OpenAI wants to raise 5-7 trillion dollars. Yes, Trillion
FauxPseudo@lemmy.world 4 months agoCame here to say this. Does she know how much money there is in the world? He is asking for basically 1/20th of all the money in the world. Even if that was possible it would be dangerous for one company to hold that much.
hglman@lemmy.ml 4 months ago
Money can be created by banks via loans, you can just make it up.
FauxPseudo@lemmy.world 4 months ago
But then you end up with inflation. So in the process of creating money you’ve reduced the value of the money. And banks working in cooperation with government create money. Private companies outside of the banking system can’t create their own money anymore. If any sizable portion of this is taken out as a loan. It creates a systemic risk for the world economy.
hglman@lemmy.ml 4 months ago
Banks most certainly make up money today via loans. This happens all the time.
FauxPseudo@lemmy.world 4 months ago
But this isn’t a bank. And making money doesn’t come without consequences. You’re not thinking about second and third order effects. This would basically be quantitative easing on a grand scale but for just one company. It would literally destroy the economy if the investment failed. And they aren’t the only player in the industry. The level of systemic risk is too large. And if it didn’t fail, it would basically be handing the world economy over to one player.