The Hater's Guide To The AI Bubble

The entire AI trade is a deeply unstable bubble built on vibes and blind faith, and the writer argues that generative AI is not making money for anyone except NVIDIA. Yahoo Finance's Laura Bratton reported that Microsoft, Amazon, Meta, Alphabet and Tesla account for 42.4% of NVIDIA's revenue, while the Magnificent 7 make up about 35% of the US stock market. The writer estimates that Meta, Amazon, Microsoft, Google and Tesla will spend over $560 billion on AI capital expenditures across 2024 and 2025 to earn around $35 billion.