TRASHFUTURE *PREVIEW* Backwash Economics feat. Ed Zitron
Apr 3, 2026
Ed Zitron, tech analyst known for sharp critiques of Big Tech and AI economics, returns with a hard look at AI funding and market hype. He breaks down OpenAI’s funding, vague infrastructure claims, and how subsidized pricing masks real costs. The conversation teases risky finance comparisons and whether markets have overcommitted to AI.
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Massive AI Funding Masks Huge Ongoing Losses
- AI company fundraising can hide enormous real losses behind headline valuations and rhetoric.
- Riley highlights a firm that lost $14B this year, projects $143B more through 2029, and shut Sora after it made only $2.1M.
Markets Overindex On AI Versus The Real Economy
- Market enthusiasm can make capital markets hinge on AI even when the real economy doesn't.
- Ed warns OpenAI or SoftBank failing could rattle markets without meaningfully changing broader economic fundamentals.
MoviePass Comparison For AI Subsidy Strategy
- Companies are disguising unsustainable pricing by subsidizing usage, like MoviePass and Uber did.
- Riley recounts MoviePass's unlimited ticket model as a parallel to AI firms giving heavy user subsidies then collapsing.