What Next: TBD | Tech, power, and the future Is the A.I. Bubble Bursting?
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Sep 5, 2025 
Ed Zitron, author of the newsletter Where’s Your Ed At and host of Better Offline, dives into the bubbling concerns surrounding artificial intelligence investments. He critiques the inflated valuations in the AI sector, drawing eerie parallels to the burst of the dot-com bubble. Zitron discusses the financial sustainability challenges faced by companies like OpenAI and examines the skepticism growing around their profitability. He also questions whether the current excitement in AI is truly transformative or merely an overhyped trend in technology.
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LLMs Fuel A Speculative Bubble
- Generative large language models are economically infeasible and contribute to a speculative bubble.
- They consume huge capital and lack clear, revenue-generating use cases despite intense hype.
Question High AI Valuations
- Re-evaluate high AI valuations and avoid assuming perpetual growth tied to AI hype.
- Look for companies with stronger fundamentals and realistic revenue drivers instead.
Two Firms Run The Generative AI Market
- OpenAI and Anthropic dominate generative AI but depend heavily on Microsoft, Amazon, and Google for funding and infrastructure.
- Both companies lose billions and show no clear path to profitability.