‘The Hater’s Guide to the AI Bubble’

 


Ed Zitron has cultivated a following for a podcast and newsletter in which he tries to poke holes in what he calls the ‘AI bubble’

Since OpenAI launched ChatGPT in November 2022, generative artificial-intelligence chatbots have attracted millions of users and provoked plenty of excitement.

Yet some skeptics are asking: If this technology is destined to be as successful as its evangelists claim, why isn’t it generating any profits?

Zitron elaborated on some of the points he made in a recent edition of his newsletter, 
“Where’s Your Ed At” and explained why he believes the AI boom will eventually lead to a painful bust on par with the collapse of the dot-com bubble.

https://www.wheresyoured.at/softbank-openai/

Even the two largest companies making the most revenues, OpenAI and Anthropic, are burning through billions of dollars a year.

MarketWatch: If this does turn out to have been a bubble all along, what do you think will finally bring down the AI trade?

Zitron: I doubt there will be one Bear Stearns-style event where everything just suddenly falls apart. 

Bear Stearns: Its Collapse, Bailout, Winners & Losers
https://www.investopedia.com/terms/b/bear-stearns.asp


I think it’s more likely a big cloud provider misses hard on earnings, and then the market will say, didn’t you say you’re doing AI? How much? Where’s the number? Show me the money, show me the profit.

At that point, things will start getting a little nasty.

Joseph Adinolfi MarketeWatch 29  July 2025

https://www.marketwatch.com/story/why-the-man-behind-the-haters-guide-to-the-ai-bubble-thinks-wall-streets-hottest-trade-will-go-bust-ac398ce0

 “Artificial intelligence” seems to be coming everywhere, but its profits are not

Meta har nu hittat hur de ska tjäna pengar på AI

https://englundmacro.blogspot.com/2025/07/meta-har-nu-hittat-hur-de-ska-tjana.html


How spy agencies are experimenting with the newest AI models

On the same day as Donald Trump’s inauguration as president DeepSeek, a Chinese company, released a world-class large language model (LLM).

https://englundmacro.blogspot.com/2025/01/deep-seek.html

On July 14th the Pentagon awarded contracts worth up to $200m each to Anthropic, Google and OpenAI, as well as to Elon Musk’s xAI

The Economist 29 July 2025

https://www.economist.com/international/2025/07/29/how-spy-agencies-are-experimenting-with-the-newest-ai-models







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