Video by The Tech Report
Ed Zitron argues that OpenAI is being crushed by the gap between its promises and its actual trajectory. The company has roughly $800 billion in commitments to Oracle, Cohere, Cerebras, Amazon, Google and Microsoft, yet its revenue growth is decelerating just as it needs to accelerate toward tens of billions a year. Zitron treats the $284 billion 2030 projection as fantasy: it would require enterprise spending to multiply several times over, with no plausible source for that money.
He extends the argument to the wider ecosystem, claiming Anthropic’s IPO marketing is a campaign to manufacture consent for a company with rotten economics, and that the press has lost the ability to interrogate run-rate figures. The likeliest endings, in his view, are absorption by Microsoft or a managed collapse blamed on Sam Altman, both of which would leave counterparties exposed. Zitron concludes that the system is already exhausting itself, and that even being half right about the bubble is enough for things to work out very badly.