The More You Buy, The More You Lose
This title could be clearer and more informative.Try out Clickbait Shieldfor free (5 uses left this month).
A detailed financial and critical analysis of the AI infrastructure spending cycle, arguing it is fundamentally unsustainable. Hyperscalers (Google, Meta, Amazon, Microsoft) have collectively spent over $1 trillion in capex on AI with no disclosed AI revenues, while taking on hundreds of billions in on- and off-balance-sheet debt. NVIDIA's Blackwell GPU efficiency claims have been walked back from 25x to 10x, yet no AI company has become profitable. The piece dissects a proposed $250B NVIDIA-OpenAI-SoftBank circular financing deal as emblematic of the broader problem: money flowing between interconnected investors with no real external demand. CoreWeave's junk-level bond spreads, Google's century bond losing 10% of value, and Oracle's credit downgrade are cited as market signals of distress. The author argues that AI's actual utility is vastly overstated, that corporate AI adoption is driven by executive signaling rather than productivity, and that the entire ecosystem is a self-reinforcing bubble that will eventually collapse when capex spending slows.
