Author: Ed Zitron's Where's Your Ed At

NVIDIA’s earnings are, effectively, the US stock market’s confidence, and everything rides on five companies — and if we’re honest, really four companies — buying GPUs for generative AI services or to train generative AI models. Worse still, these services, while losing these companies massive amounts of money, don’t produce much revenue, meaning that the AI trade is not driving any real, meaningful revenue growth.

We’re three years in, and generative AI’s highest-grossing companies — outside OpenAI ($10 billion annualized as of early June) and Anthropic ($4 billion annualized as of July), and both lose billions a year after revenue — have three major problems:

Businesses powered by generative AI do not seem to be popular. Those businesses that are remotely popular are deeply unprofitable…and even the less-popular generative AI-powered businesses are deeply unprofitable.

Fantastic deep dive on the state of the AI market. Written in July. it’s now October and I think much of this is coming to light. The fact is a handful of models are deeply subsidized with VC funding that powers the majority of AI “products” which aren’t delivering value. Almost reminds me of the overbuilding of fiber…

_{Quote Citation: Ed Zitron’s Where’s Your Ed At, “The Hater’s Guide To The AI Bubble”, 2025-07-21, https://www.wheresyoured.at/the-haters-gui/}