Keep pulling the thread on Ed Zitron.
Ed Zitron believes that nearly every AI startup is fundamentally unprofitable.
Ed Zitron asserts there is no evidence that the cost of AI inference is decreasing.
Big tech companies are projected to spend a total of $725 billion on AI in 2026.
SoftBank reported a $46 billion gain for the year, driven by the increased valuation of its investment in OpenAI.
The free cash flow of major technology companies is decreasing due to significant increases in capital expenditures for AI infrastructure.
Ed Zitron argues that the majority of Microsoft's reported $37 billion AI ARR is not from organic customer revenue but is circular, coming from OpenAI paying for Azure services with its venture capital funding.
Ed Zitron alleges that over half of the combined $748 billion in upcoming revenue for Microsoft, Google, and Amazon is derived from just two companies, OpenAI and Anthropic, purchasing cloud compute.
Ed Zitron claims, based on a source, that one of the major cloud hyperscalers has only brought 1.5 gigawatts of IT capacity online, despite spending hundreds of billions in capex.
Ed Zitron argues that current AI compute shortages are caused by a lack of new data center supply coming online, not by overwhelming organic customer demand.
OpenAI's annual recurring revenue (ARR) has reportedly grown from $2 billion in 2023 to $25 billion currently.
Anthropic has reportedly reached $30 billion in annual recurring revenue (ARR).
In a legal affidavit dated March 9, 2026, Anthropic's CFO Krishna Rao stated the company had generated $5 billion in lifetime revenue.