“In totality, the AI industry seems to have made about $65 billion in revenue (not profit!) in 2025, with I estimate about a third of that being the result of OpenAI or Anthropic feeding money to hyperscalers or neoclouds like CoreWeave, and a billions more being AI startups (funded entirely by VC) feeding money to Anthropic and OpenAI to rent their models.

Even the venture capital scale of AI startups is drastically overestimated. While (as reported by The New York Times) “AI startups” raised $297 billion in the first quarter of 2026, $188 billion of that was taken by OpenAI (which has yet to fully receive the funds!), Anthropic, xAI, and Waymo. In 2025, $425 billion was invested in startups globally, with half of that (about $212.5 billion) going to AI startups, but about half of that ($102 billion) going to Anthropic, OpenAI, xAI, Scale AI’s not-quite-acquisition by Meta, and Bezos’ Project Prometheus.

The great financial crisis was, as I’ll get into, a literal collapse of how banks, financial institutions, and property businesses operated, with their reckless speculation on a housing market that was only made possible by a craven mortgage industry incentivized to get people to sign at any cost. When people speculated that there was a bubble, articles ran saying that housing was actually cheap, that subprime lending had actually “made the mortgage market more perfect,” that the sky was not falling in the credit markets because unemployment wasn’t going to rise, that subprime mortgages wouldn’t hurt the economy, and that there was no recession coming.”

https://www.wheresyoured.at/premium-ai-isnt-too-big-to-fail/

#AI #TooBigToFail #AIbubble #BigTech

"You become extensive not necessarily by being the best, but by spreading out and becoming indispensable to the system itself."

https://insights.priva.cat/p/anthropic-will-probably-survive-trumps by Carey Lening @privacat

#tooBigToFail #extensity #Anthropic #AIWar

#OTD January 6, 1991

The Bank of New England collapses amid fears of systemic risk, reinforcing the doctrine that some institutions are considered “too big to fail.”

Photo credit: public domain
#january6th #toobigtofail #banks #economy #history

For such a behemoth of a company as Microsoft, it is incredible how many failures it has put out to the world, critical or commercial. MS-DOS 4.0, Microsoft Bob, Internet Explorer 6, Zune, Kin, Lumia and Windows Phone, Kinect, Surface RT, Cortana, Band, Copilot, and every other version of Windows since Me (including Windows 11, out of privacy concerns), those are just the most glaring examples. Truly amazing, Microsoft. Truly remarkable.

#Microsoft #corporatefailures #hallofshame #toobigtofail

What if American workers decided the only ones entitled to be "too big to fail" are us – the ones whose labor built your platforms, whose attention became your product, whose data trained your models, and whose spending made you untouchable?
https://substack.com/@shaynej/note/c-184374857?r=5h4wg0&utm_source=notes-share-action&utm_medium=web

#AI #AIBubble #WorkersFirst #us #TechAccountability #TooBigToFail #Leadership

"The regulatory sweet spot for a financial institution is to escape paying for insurance while gambling on an implicit “#toobigtofail” guarantee if anything goes wrong. That’s what happened with money-market funds in 2008–’09. ... In the end, the federal government guaranteed $2.7 trillion of money-market liabilities—for funds that had not paid a cent for this federal protection.

#cryptocurrency
#stablecoins

https://www.theatlantic.com/ideas/2025/11/cryptocurrency-economy-financial-crisis/684960/?gift=36MUroklPHjSVbIeXUwSveWkjg_kzV8JpzrAf4omxGw