The Diary Of A CEO|27. Aug.
The Man Who Calls BS On AI: They’re LYING About AI, 2027 Is When It All Breaks! | Ed Zitron
Key Points by Ed Zitron
- Generative AI is a con – companies sell it as magic, but it's expensive, unreliable cloud software.
- Massive losses: OpenAI lost $20.9 billion last year. No AI company is profitable; they rely on constant subsidies from Big Tech.
- Myths of the AI industry:
- AI creates enormous economic growth – No, revenues outside OpenAI/Anthropic are tiny (~$22B) against over a trillion in spending.
- AI will replace all jobs – No economic data supports this. In fact, software quality is deteriorating.
- US must spend trillions to beat China – There is no race; China already has models.
- Financial reality: It's a „Rotcom Bubble“ – Big Tech (Microsoft, Amazon, Google) invest to fake growth while their core markets stagnate.
- Subsidized usage: Consumers pay far less than actual cost (token consumption). Enterprises resist when charged per token.
- Outlook 2027: Zitron predicts OpenAI's collapse (~2027) when funding stops, triggering a tech depression, stock crashes, and retirement losses.
- Be skeptical of Big Tech promises.
- Hold cash, don't blindly invest in the AI hype.
- Best hedge: Cultivate good relationships – more important than any stock gain.
