The Digital Press

Edward Zitron argues that the generative AI industry is a massive bubble poised to collapse, driven by hype, unsustainable costs, and a lack of real profitability or demand.

Why it matters: AI’s huge investments mask a failing business model that burns billions without proven revenue or sustainable use cases.

The big picture: The market relies heavily on two players, OpenAI and NVIDIA, with AI compute demand propped up by circular debt and inflated deals.

The stakes: OpenAI needs over a trillion dollars soon, but venture capital and private credit are insufficient, threatening a major financial fallout.

Commenters say: Readers find Zitron’s critique repetitive but largely accurate, expressing concern about AI’s economic impact and uncertainty about how to respond.