Where's Your Ed At

Ed Zitron argues that the AI industry is not 'too big to fail,' systematically dismantling common rationalizations used to justify the AI bubble. He draws detailed parallels to the subprime mortgage crisis, showing how AI startups are subsidized by VC funding in ways that make them structurally unviable without continuous capital infusion. Key data points include: only 5GW of AI data centers actually under construction worldwide, over $600M of OpenAI shares sitting unsold on secondary markets, and the Poolside-CoreWeave deal collapsing. He argues that unlike the 2008 financial crisis — which involved trillions in securitized instruments — AI's financial footprint is comparatively small, meaning its collapse would hurt markets but would not constitute a systemic economic risk. Companies like NVIDIA, OpenAI, and Anthropic are not load-bearing to the global economy the way mortgage-backed securities were.

Premium: AI Isn't Too Big To Fail

Ai definitely has its utility, but to say that it is too big to fail is an over statement. Great read.

I’ve also watched a recent video from <a href="https://www.youtube.com/watch?v=6a9L-3Hiobs&amp;pp=ygUVdGhlIGluZm9ncmFwaGljcyBzaG93" target="_blank" rel="noopener nofollow">The Infographics Show</a> about OpenAI’s risk for bankruptcy. As a skeptic myself, I don’t believe any hype until it’s proven with numbers. From this video alone, I can agree that the profit-making capabilities of AI as a company is too unstable and relies on achieving AGI as its Hail Mary last straw to keep the engines rolling.
Who knows, maybe I am wrong. But as of the moment, I believe what the numbers are telling me and we all know money don’t lie.