Mastodawn

Another really excellent piece from Ed Zitron. If you missed his 3 part series on how the AI bubble might collapse, I suggest you make time for that.

“Whatever obtuse fantasies you have about the current state of generative AI are irrelevant to a much larger problem: that the infrastructure being built and compute commitments being made are being done so at a level that demands that generative AI and AI compute generate over $2 trillion in annual revenue by 2030. When I say that, I mean it absolutely has to do that otherwise none of the data center capex makes sense, and neither Anthropic nor OpenAI can pay their commitments.”

https://www.wheresyoured.at/ai-is-slowing-down/

#AI #AIBubble #Anthropic #OpenAI #AISlop #DataCentres

AI Is Slowing Down

If you liked this piece, you should subscribe to my premium newsletter. It’s $70 a year, or $7 a month, and in return you get a weekly newsletter that’s usually anywhere from 5,000 to 18,000 words, including vast, detailed analyses of NVIDIA, Anthropic and OpenAI’s

Ed Zitron's Where's Your Ed At

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Francisca Sinn Jun 8

“But seriously folks, the combined compute demand of every single AI company in the world doesn’t currently reach $100 billion — and it needs to be ten times that by 2030 or all those data centers got built for no reason!

And for that to happen, both Anthropic and OpenAI need to be making about $400 billion a year in annual revenue, which means there needs to actually be that much demand for AI services! Right now, Anthropic and OpenAI’s combined projected revenues for 2026 sit somewhere in the region of $60 billion — so, you know, they only need to grow by 496% by the end of 2029! “

https://www.wheresyoured.at/ai-is-slowing-down/

2/3

#AI #AIDataCentres #AIBubble #Economy

AI Is Slowing Down

If you liked this piece, you should subscribe to my premium newsletter. It’s $70 a year, or $7 a month, and in return you get a weekly newsletter that’s usually anywhere from 5,000 to 18,000 words, including vast, detailed analyses of NVIDIA, Anthropic and OpenAI’s

Ed Zitron's Where's Your Ed At

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Francisca Sinn Jun 8

“The problem with this marvelous plan is that at some point there had to be an honest transaction — real, honest, sustainable demand based on a reliable product that people liked paying for because they understood its value. Right now, AI revenues are either chaotically experimental or so thoroughly-subsidized that labs are giving away hundreds of dollars a user in the hopes that at some point said user might want to pay even more money for measurably less value, the kind of proposition you make when you think your customers are fucking idiots.”

https://www.wheresyoured.at/ai-is-slowing-down/

3/3

#AI #AIDataCentres #AIBubble #AIEconomy #AI Collapse

AI Is Slowing Down

If you liked this piece, you should subscribe to my premium newsletter. It’s $70 a year, or $7 a month, and in return you get a weekly newsletter that’s usually anywhere from 5,000 to 18,000 words, including vast, detailed analyses of NVIDIA, Anthropic and OpenAI’s

Ed Zitron's Where's Your Ed At