The Man Who Calls BS On AI: They’re LYING About AI, 2027 Is When It All Breaks! | Ed Zitron
In a Nutshell
Ed Zitron argues generative AI is a fundamentally unprofitable con built on circular funding between Big Tech companies, where OpenAI and Anthropic's massive losses are subsidized by Microsoft, Google, and Amazon while the entire industry hides actual AI revenue figures and runs on hype rather than demand. The trillion-plus dollars being spent on data centers and GPUs creates infrastructure that will cost as much to operate in 2050 as today, with no path to profitability since even power users burn $400-14,000 in tokens monthly while paying just $20-200 subscriptions. Zitron predicts this breaks in 2027 when the unsustainable economics force massive restatements, IPO failures, and a tech depression as the $1.1 trillion in cloud commitments to two unprofitable companies can no longer be maintained.
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Ed Zitron describes generative AI as fundamentally a con, arguing that ultra-rich and ultra-powerful people are lying about its capabilities and financials. He states that the technology has been sold from the beginning in terms of magic, but is actually a half-assed autocomplete machine that is misleading the entire world. Zitron notes that he has been in the tech industry for 16 years and loves technology, but does not like being misled, calling this the largest non-consensual push of technology in history.
Zitron disputes the claim that the AI industry is creating enormous economic growth, stating that all of these companies run at horrifying losses. He cites that OpenAI lost $20.9 billion last year, and notes that none of the companies can say they are on the path to making this profitable because they cannot.
Zitron states that AI will replace all human jobs is not happening and there is no economic data to support it.
Zitron questions the need for the United States to spend trillions to beat China in the AI race, asking what the race accomplishes. He notes that people keep saying what if these models fall into the wrong hands, but states they are already in the wrong hands with Mark Zuckerberg, Sam Altman, and Dario Amodei.
Zitron criticizes Mark Zuckerberg's statement that they will continue to invest aggressively in infrastructure to meet the demand, calling it a monstrosity. He references the Shrek line some of you may die, but that's a risk I'm willing to accept, and notes that if only these people cared about poverty or actual problems in the world versus buying enough GPUs.
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