Keep pulling the thread on Ed Zitron.
Ed Zitron argues that the current AI market rally is a semiconductor rally, not one based on successful underlying AI businesses, which he claims do not exist.
Andrew McDonald, COO of Uber, stated that the company is having difficulty justifying its AI spending based on measurable return on investment.
Ed Zitron speculates that OpenAI may have lost around $20 billion in the last year.
Ed Zitron predicts that when AI model companies file their S-1s for IPOs, it will be a 'massacre' because they lack a path to profitability.
Ed Zitron claims the AI industry has absorbed over a trillion dollars in investment in the last three years.
Ed Zitron claims that Anthropic has raised more than $64 billion in the last six months.
Ed Zitron argues that OpenAI and Anthropic should not be allowed to go public because they are unprofitable companies that pose a risk to retail investors' 401(k)s if included in market indices.
Ed Zitron predicts that 'neo-cloud' companies like CoreWeave, Cipher Mining, and TerraWolf will become 'shells of the corporations they used to be' if the AI market bubble bursts.
Based on his research, Ed Zitron claims it is taking 6 to 12 months to install a single quarter's worth of GPUs from NVIDIA.
Ed Zitron alleges that Microsoft's Fairwater data centers are less than half complete, despite the company's claims that they are fully operational.
Ed Zitron alleges that Anthropic's brief period of profitability was the result of 'planned financial engineering' involving a compute discount from Elon Musk's SpaceX.
Citing a report from The Information, Ed Zitron states that OpenAI recently had a negative 122% non-GAAP operating margin.