Am I Meant to Be Impressed?

5 hours ago

Big tech companies like Microsoft, Google, Amazon, and Meta are spending trillions on AI capex with minimal returns, creating a massive bubble.
AI revenues are largely circular and reliant on unsustainable companies: OpenAI makes up over 70% of Microsoft's AI revenue, while Anthropic accounts for over 80% of Amazon's.
Google refuses to disclose AI revenue specifics, but growth appears tied to Anthropic's spending, with evidence of circular financing through TPU deals.
Meta has burned over $150 billion on AI with vague benefits, such as minor ad conversion lifts, and lacks a clear profitable strategy.
Anthropic and OpenAI are "load-bearing failsons," consuming most AI compute capacity and revenue while depending on continuous venture capital to survive.
The AI demand story is a lie; outside OpenAI and Anthropic, there's little real demand, and the industry is propped up by a circular economy of funding.
Depreciation from obsolete GPUs will increasingly eat into tech giants' profits, undermining growth claims attributed to AI.
Media and analysts often uncritically accept tech companies' vague AI narratives, enabling deceptive practices and financial obfuscation.
The AI bubble is unsustainable, with companies like Microsoft shifting to token-based billing (e.g., GitHub Copilot) signaling underlying unprofitability.
The entire AI industry risks collapse if funding stops, as most businesses lack paths to profitability and rely on artificial demand.

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