What Next | Daily News and Analysis Is the A.I. Bubble Bursting?
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Sep 5, 2025 
Ed Zitron, a notable PR expert and the voice behind the newsletter Where’s Your Ed At, dives deep into the skepticism surrounding the AI hype. He critiques the disconnect between the booming investments in generative AI and the struggle for these companies to turn profits. Zitron examines the financial troubles of major players like OpenAI and the comparison to the dot-com bubble, questioning the sustainability of this tech frenzy. The discussion prompts listeners to contemplate the real impact of AI on society and the economy.
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Bubble Built On Hype, Not Revenue
- Ed Zitron argues a new AI investment bubble formed after crypto and metaverse froth and is already running away.
- Companies hype capabilities but rarely disclose concrete AI revenue, signaling a disconnect between talk and money.
Reassess AI-Linked Stock Assumptions
- Re-evaluate investments in AI-focused mega-cap stocks and stress-test growth assumptions against real revenue.
- Look for companies with demonstrable, logic-driven revenue rather than hype-driven multiples.
Two Firms Run By Big Cloud Players
- OpenAI and Anthropic dominate the generative AI landscape yet rely heavily on Microsoft, Amazon, and Google for funding and infrastructure.
- Both firms lose billions and lack clear paths to profitability according to Zitron.