Zitron: "Everyone Has Been Sold a Lie" on AI
EZ Primary Research CEO Ed Zitron argues that major tech companies' aggressive AI spending is not driven by diverse demand, but rather by a need to create infrastructure for two unprofitable companies: OpenAI and Anthropic. Zitron cites UBS and Barclays reports indicating that a significant portion of Google Cloud and Microsoft's revenue is derived from these two AI firms, suggesting that without them, their growth would be minimal. He also claims OpenAI lost $20.9 billion in 2025 and is burning through cash, with its reliance on continued capital injections being a potential flashpoint, especially with the company reportedly delaying its IPO until 2027.
The sustainability of the current AI boom is questioned, with potential implications for investor confidence and the financial health of major tech companies reliant on a narrow base of AI customers.
