July 18, 2025 • 14 mins
In this week’s monologue, Ed Zitron walks you through the pale horses of the AIpocalypse - and how the AI bubble’s deepest weakness is that it’s almost entirely based on vibes.
Anthropic’s new data center in Indiana: https://www.nytimes.com/2025/06/24/technology/amazon-ai-data-centers.html
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Zone Media. Hello and welcome to this week's Better Offline Monologue.
I'm your host ed ze Trunk. In August of last year,
I put out a podcast called How the AI Bubble Bursts,
where I ran down what I thought would be the
signs that things were collapsing, my pale horses of the
(00:24):
AI Apocalypse, if you will, which is something that reads
really well, but when you say it out loud, not
so good. The reason I put these together is that
the bubble is unlikely to have one specific moment where
things explode. Things like burst earns Is collapse during the
Great Financial Crisis for such significant moments, in part because
that was a public company. Mortgages were a massive part
and are a massive part of the economy, and indeed
(00:45):
there was billions and indeed I think trillions of dollars
resting on them, and I don't really think there's a
situation like that, nor is there one where a public
company collapses as a result of the AI bubble bursting.
This bubble is different because it's so thoroughly based on
that games. I'll end up at some point doing a
longer episode about this, But the long and short of
it is that the actual core of the system. The
(01:06):
real weak point is actually in video. In Vidia's continued
success comes from the reliable quarter of a quarter or
a year of a year growth from selling GPUs, the
graphics processing units that power generally of AI and that
people take and put inside of servers so that they
can immediately start losing money. More than forty percent of
their GPU revenue comes from the other six companies in
the Magnificent Seven, Microsoft, Google, Meta, Tesla, Apple, and Amazon,
(01:31):
and then VideA. Deeply depends on their continued and growing
hunger for GPUs. It isn't just enough that they buy
the same amounts, they must buy more. The rest of
the mag seven's valuations are dependent on continued growth too,
which is what AI is meant to provide them. But
it's not really providing growth at all. Indeed, their growth
stories are not really based on numbers but vibes. They're
(01:53):
based on feelings and the general warm, fuzzy feeling the
dipgits get when they claim that AI is the future.
Let me give you an example. Metas stock jump because
they've announced the theoretical data center the size of Manhattan
now important detail here as well. Meta is making exactly
minus dollars on generative AI. They're just putting generative AI everywhere,
(02:14):
and yeah, giving people a little bit of psychosis. I
imagine filling feeds full of slop. It's very bad. And
you know what, it also isn't making them money. And
right now this is really good for the Magnificent seven
because they're not actually having to prove that AI is
a big deal. People are basically believing it is because
the AI trade, which means the value of these stocks,
remains positive, and honestly, it is currently a positive trade,
(02:37):
even though it's based on effectively nothing. Seriously, Amazon may
only make five billion dollars in revenue this year on AI,
and I mean revenue, not profit. Googled maybe three to
seven billion, Microsoft thirteen billion dollars, and ten billion dollars
of that is open AI's compute. These are pathetic numbers.
But these companies are let off because the AI trade
(02:57):
still works. The possibilities are still theres that don't exist
today and don't appear to have any path to them either.
They're coming, we swear, if we say agents enough time,
maybe it'll work. The long and short of it is
that everything about the AI industry is based on some level,
on lies, on lies both subtle and avert, and the
general sense that generative AI is both the future and
(03:20):
the future of the economy. There are a few real
tangible things to point at other than chat GPT's five
hundred million weekly users and the tens of billions of
dollars invested in AI startups, or maybe the weird acquisition
deals like the two point four billion dollars that Google
just gave kind of AI code editor Windsurf, except Google
took the staff, some of the staff the C suite,
(03:42):
the R and D team for the two point four billion,
and then Cognition, who makes the Devin coding pop took
the rest for an undisclosed sum. It's all really, really
fucking weird. It's all very strange, and yet when you
look beneath the surface, there really are few returns. Windsurfs
monthly revenue was six point eight brillion, three million dollars
a month, a ridiculously small amount, working out to about
(04:04):
eighty two million dollars of annualized revenue. Yet based on
the Information's Generative AI data base, Windsurf was actually one
of the highest earning AI startups out there no really
based on annualized revenue meaning month multiplied by twelve, most
Ai companies make about one hundred million dollars annualized or less.
Not really, that's about eight point three million dollars a
year a month with since there's the Weka Xai together
(04:27):
a bridge Glean perplexity, and they're all making about one
hundred million dollars annualized. And I must be clear about
how weird this status. Annialize just means the month of
revenue times twelve. Customers churn. Customers churn, so your arr
may go down when you have a few people drop out,
it may spike arbitrarily because you've increased prices, and it's
(04:48):
just it's a very bad statistic to use. Yet people
are not really looking at the other thing, which is
that's not a lot of money. Eight point three million
dollars a month. You have ad agencies that make several
times that. Ad agency's bank ads on Facebook and Google.
These are terrible fucking companies. I mean outside of one
hundred million ARR side, you've got mid Journey, who are
(05:11):
inexplicably profitable. We'll look into that, and Neo four j
and they make two hundred million dollars a month, sorry,
two one hundred million dollars annualized, so about sixteen point
six million dollars, which is again not amazing. None of
these are amazing. These aren't great. These would be okay
startups if they were profitable, and they're absolutely not. But
right on the tippy top behind Anthropic and open AI
(05:34):
is any sphere who makes Cursor and they make five
hundred million dollars annualized, or about forty one point six
million dollars a month, which is bad because in June
all of their prices got increased by Anthropic, and on
top of that they had to change the pricing and
now Cursor kind of sucks. Go on their subredd it
check it out anyway. This is why you don't like
(05:56):
annualized as a stat by the way, because I reckon
their July revenue might be a little bit lower than
forty one point six million dollars, but we'll never know
because well unless someone reports there. If you've got any
numbers on any of these companies, my signal is eas
it tron ezit ron dot seventy six on signal. Please
send me anything you have. I love numbers anyway, past
(06:18):
that point, it's only anthropic and open AI. And I've
left out a few companies like Touring and Scale they
don't make AI products their consultancies. But the long and
short of it is, this industry doesn't make much fucking money.
The actual returns from it aren't that very good. It's
not very good at all. But the reason I'm telling
you all these numbers is that I need you to
know that this industry is not held up by the
actual businesses or their revenues. None of these companies are profitable,
(06:42):
and it certainly isn't held up by the actual products themselves.
And I'm sure you've got an AI friend who's come
to you and said, oh, I use it for this.
See how far you get them in the conversation before
they just say they're using it like a search engine.
We had this whole thing with Brian on the podcast
this week. It's like, yeah, really emphatically talking about the
fact that you've got a slightly sexier search engine that
(07:04):
may or may not get things right, that can fool
you into believing you're correct about something which isn't a
fucking product. Now, if it was, people will be making money.
It's ridiculous. But even in areas like coding, coding the
one place where people can point and go look look
users like this, look edward, look at them. A study
from nonprofit group Model Evaluation and Throat Research found that
(07:26):
despite developers believing AI coding tools sped them up by
twenty four percent, coding tools actually increase the completion time
of their tasks by nineteen percent. It actually it slowed
them down. Oh my god. Every week with this industry,
I feel like I'm going insane. It's like every week
there's this goddamn story like this. I still have people
who tell me it's the future. I feel like I'm
(07:48):
going insane. But as a result of AI being a
nearly entirely vibe spaced economy, the pale horses of its
apocalypse will be vibe shifters rather than defined events that
would logically change things. Remember Deep Seek, that was a
clunky story. So you had a Chinese model developer that
may be cheaper, it was cheaper to train, much cheaper
to train, but still cheaper to train, and their model
(08:11):
might be cheaper, and it is comparable. I mean, I've
certainly made my hay with the episodes and interviews that
did around it, but I surprise that shocked the market.
There are bigger, nastiest stories. But if that can do
it well, basically anything could one thing that really spreads
like information poison into the heads of business idiot's everywhere
who are saying AI now please without really understanding what
(08:34):
it does. It's unlikely to be one big pop but
several little doots from the bubble deflating. So let's get
to it. Here are the science to look out for,
freshly updated, and if you have any ideas, please do
reach out. I'd love to hear from you. We'll start
with an obvious one. Any price increases or decreases are
open AI and Anthropic. I called these increases in August,
and they had decreases because, as I've mentioned in the
(08:56):
subprime AI crisis, there is now a race to the
boond for model developers. Open Ai cut the price of
their own through Reasoning model by eight percent in June
in an attempt to undercut Anthropics claud for Opus, which
launched May twenty second, I believe, and we've already begun
to see price increases too. Anthropic added service theres and
open ai priority processing for enterprise customers to give them
(09:17):
uninterrupted service in June. And I must be clear when
I say enterprise, I mean any AI company that has
customers at scale. So any Sphere, Cursor, Glean and the like,
they are enterprise customers and they are very likely having
to pay these prices. Now here's another one. Anthropic and
open Ai may move away from monthly subscriptions, and indeed
(09:37):
ANYAI company may do this. This is a huge payer
horse when companies start moving away from simple business models,
so twenty bucks one hundred bucks a month, or they
start changing those so the returns on a sort of
returns the actual usership isn't obvious. Isn't obvious how much
you can or can't use. That's a sign that the
company is trying to contain costs and indeed fuck with
(10:00):
their customers a bit. And we've already seen a little
bit of this with how Cursor changed their pricing or
Claude Max the one hundred dollar or two hundred dollars
a month subscription from Anthropic, which has now changed things
to say you get more usage at the higher tiers
than the twenty dollars a month pro subscription. How much
more it isn't clear. Go to Claude subreadit. You'll see
a lot of people who are constantly saying, I don't
(10:21):
know what the rate limits are, and that's working as
intended by the way Anthropic is tweaking things very clearly
on the back end, we do not know what they are.
There are rumors that they are quantizing models, so making
them smaller, dumber, cheaper to run, but still doing comparable things,
or just not having as much access within peak hours.
These are unsubstantiated rumors, but I've seen enough claims of
(10:43):
them that they're worth mentioning. These are signs that things
are getting bad, or that they need to make things
more profitable. And really, any and all cost increases on
consumers by any AI service are a pay or horse,
as they suggest the company in question is trying to
deal with these ruinous costs. Remember, there are no profitable
AI companies. It's fucking crazy. We are three years into
(11:05):
this dog shit and there's none of them. Okay, surge AI.
They are an AI data training company. That does not matter.
It does not matter. If you've got a car that
has a horrible fuel economy. You don't point out how
well oil is selling to say that the car is good.
The different things anyway, Any and all rate limits that
(11:26):
any AI startup are a huge pay or horse because
these companies are spending a shit ton of money and
they're having to run these massive infrastructural operations to keep
things going. Those things are expensive. Power in particular is expensive,
so any mediating those costs is necessary. If you see
it with other companies, it's even worse because it means
(11:46):
that open ai and Anthropic are turning the screws on them. Now.
Another obvious one, of course, is any funding of revenue
problems from the remaining AI software companies Glean, Harvey, Alpha Sense,
any sphere who makes Cursor as I mentioned, or replet
for example. It's just the funding required to keep these
companies going is running out, and their business models aren't working.
And I want to make one real clear point here.
I'm kind of repeating myself, but it's necessary. These companies
(12:09):
are symbolic of whether generative AI will work. I realized
chet GPT is the big sexy one. But if you
can't build software on GENERATIVEAI and sell it for a profit,
there is no industry here. Every single major cloud computing
revolution has started because there is profit, and fucking hell,
it's nothing like Amazon Web Services when it grew. I'm
(12:31):
tired of hearing this point. I think I have to
do a thing about it because I'm fucking sick of it.
It's nothing to do with it, nothing, It's not remotely similar.
The only similar thing is that goddamn data centers. God
calming down. But on the subject to data centers, any
delays to Stargate or Amazon and Anthropics new Carlisle, Indiana
(12:53):
build out, both Anthropic and OpenAI are running into capacity issues.
This is documented well both by the companies and reporting
from outs like the Information. And they need these projects
to happen because right now it's very obvious Microsoft is
not going to expand their infrastructure for Open AI and
Anthropic well, they need Amazon to do it. But data
centers don't grow like weeds. They take forever to build.
(13:16):
I don't even know when the Carlysle Indiana data center
is going to get built. Fucking hell, what a mess.
Every reason I must think about this, it's such a mess,
all right. One final pale horse, and this is my
favorite one. Anything that happens with soft Bank and their
ability to raise money is a big pale horse the
paylist of them all. Actually, because soft Bank is critical
to everything. Soft Bank is the money behind open Ai.
(13:39):
Soft Bank is the money behind Stargate. Soft Bank is
financially responsible for Stargate, by the way, And if open
Ai doesn't move in to Stargate, and indeed if Stargate
never happens, Oracle gets left with forty billion dollars of
chips unused and Cruso, who they have to pay a
billion dollars I think, have a fifteen year lease with them.
(14:00):
What a mess. But as I've said, the actual bubble
bursting will be slow, annoying and unsatisfying at times. But
these pale horses are the signs that things are falling apart.
I will, as ever keep you up to date on
when these signs are happening, what they mean, why you
should care. I'll probably say fucking shit a few times
when I do, so, really appreciate you, love you all,
Thanks for listening.
Zone Media. Hello and welcome to this week's Better Offline Monologue.
I'm your host ed ze Trunk. In August of last year,
I put out a podcast called How the AI Bubble Bursts,
where I ran down what I thought would be the
signs that things were collapsing, my pale horses of the
(00:24):
AI Apocalypse, if you will, which is something that reads
really well, but when you say it out loud, not
so good. The reason I put these together is that
the bubble is unlikely to have one specific moment where
things explode. Things like burst earns Is collapse during the
Great Financial Crisis for such significant moments, in part because
that was a public company. Mortgages were a massive part
and are a massive part of the economy, and indeed
(00:45):
there was billions and indeed I think trillions of dollars
resting on them, and I don't really think there's a
situation like that, nor is there one where a public
company collapses as a result of the AI bubble bursting.
This bubble is different because it's so thoroughly based on
that games. I'll end up at some point doing a
longer episode about this, But the long and short of
it is that the actual core of the system. The
(01:06):
real weak point is actually in video. In Vidia's continued
success comes from the reliable quarter of a quarter or
a year of a year growth from selling GPUs, the
graphics processing units that power generally of AI and that
people take and put inside of servers so that they
can immediately start losing money. More than forty percent of
their GPU revenue comes from the other six companies in
the Magnificent Seven, Microsoft, Google, Meta, Tesla, Apple, and Amazon,
(01:31):
and then VideA. Deeply depends on their continued and growing
hunger for GPUs. It isn't just enough that they buy
the same amounts, they must buy more. The rest of
the mag seven's valuations are dependent on continued growth too,
which is what AI is meant to provide them. But
it's not really providing growth at all. Indeed, their growth
stories are not really based on numbers but vibes. They're
(01:53):
based on feelings and the general warm, fuzzy feeling the
dipgits get when they claim that AI is the future.
Let me give you an example. Metas stock jump because
they've announced the theoretical data center the size of Manhattan
now important detail here as well. Meta is making exactly
minus dollars on generative AI. They're just putting generative AI everywhere,
(02:14):
and yeah, giving people a little bit of psychosis. I
imagine filling feeds full of slop. It's very bad. And
you know what, it also isn't making them money. And
right now this is really good for the Magnificent seven
because they're not actually having to prove that AI is
a big deal. People are basically believing it is because
the AI trade, which means the value of these stocks,
remains positive, and honestly, it is currently a positive trade,
(02:37):
even though it's based on effectively nothing. Seriously, Amazon may
only make five billion dollars in revenue this year on AI,
and I mean revenue, not profit. Googled maybe three to
seven billion, Microsoft thirteen billion dollars, and ten billion dollars
of that is open AI's compute. These are pathetic numbers.
But these companies are let off because the AI trade
(02:57):
still works. The possibilities are still theres that don't exist
today and don't appear to have any path to them either.
They're coming, we swear, if we say agents enough time,
maybe it'll work. The long and short of it is
that everything about the AI industry is based on some level,
on lies, on lies both subtle and avert, and the
general sense that generative AI is both the future and
(03:20):
the future of the economy. There are a few real
tangible things to point at other than chat GPT's five
hundred million weekly users and the tens of billions of
dollars invested in AI startups, or maybe the weird acquisition
deals like the two point four billion dollars that Google
just gave kind of AI code editor Windsurf, except Google
took the staff, some of the staff the C suite,
(03:42):
the R and D team for the two point four billion,
and then Cognition, who makes the Devin coding pop took
the rest for an undisclosed sum. It's all really, really
fucking weird. It's all very strange, and yet when you
look beneath the surface, there really are few returns. Windsurfs
monthly revenue was six point eight brillion, three million dollars
a month, a ridiculously small amount, working out to about
(04:04):
eighty two million dollars of annualized revenue. Yet based on
the Information's Generative AI data base, Windsurf was actually one
of the highest earning AI startups out there no really
based on annualized revenue meaning month multiplied by twelve, most
Ai companies make about one hundred million dollars annualized or less.
Not really, that's about eight point three million dollars a
year a month with since there's the Weka Xai together
(04:27):
a bridge Glean perplexity, and they're all making about one
hundred million dollars annualized. And I must be clear about
how weird this status. Annialize just means the month of
revenue times twelve. Customers churn. Customers churn, so your arr
may go down when you have a few people drop out,
it may spike arbitrarily because you've increased prices, and it's
(04:48):
just it's a very bad statistic to use. Yet people
are not really looking at the other thing, which is
that's not a lot of money. Eight point three million
dollars a month. You have ad agencies that make several
times that. Ad agency's bank ads on Facebook and Google.
These are terrible fucking companies. I mean outside of one
hundred million ARR side, you've got mid Journey, who are
(05:11):
inexplicably profitable. We'll look into that, and Neo four j
and they make two hundred million dollars a month, sorry,
two one hundred million dollars annualized, so about sixteen point
six million dollars, which is again not amazing. None of
these are amazing. These aren't great. These would be okay
startups if they were profitable, and they're absolutely not. But
right on the tippy top behind Anthropic and open AI
(05:34):
is any sphere who makes Cursor and they make five
hundred million dollars annualized, or about forty one point six
million dollars a month, which is bad because in June
all of their prices got increased by Anthropic, and on
top of that they had to change the pricing and
now Cursor kind of sucks. Go on their subredd it
check it out anyway. This is why you don't like
(05:56):
annualized as a stat by the way, because I reckon
their July revenue might be a little bit lower than
forty one point six million dollars, but we'll never know
because well unless someone reports there. If you've got any
numbers on any of these companies, my signal is eas
it tron ezit ron dot seventy six on signal. Please
send me anything you have. I love numbers anyway, past
(06:18):
that point, it's only anthropic and open AI. And I've
left out a few companies like Touring and Scale they
don't make AI products their consultancies. But the long and
short of it is, this industry doesn't make much fucking money.
The actual returns from it aren't that very good. It's
not very good at all. But the reason I'm telling
you all these numbers is that I need you to
know that this industry is not held up by the
actual businesses or their revenues. None of these companies are profitable,
(06:42):
and it certainly isn't held up by the actual products themselves.
And I'm sure you've got an AI friend who's come
to you and said, oh, I use it for this.
See how far you get them in the conversation before
they just say they're using it like a search engine.
We had this whole thing with Brian on the podcast
this week. It's like, yeah, really emphatically talking about the
fact that you've got a slightly sexier search engine that
(07:04):
may or may not get things right, that can fool
you into believing you're correct about something which isn't a
fucking product. Now, if it was, people will be making money.
It's ridiculous. But even in areas like coding, coding the
one place where people can point and go look look
users like this, look edward, look at them. A study
from nonprofit group Model Evaluation and Throat Research found that
(07:26):
despite developers believing AI coding tools sped them up by
twenty four percent, coding tools actually increase the completion time
of their tasks by nineteen percent. It actually it slowed
them down. Oh my god. Every week with this industry,
I feel like I'm going insane. It's like every week
there's this goddamn story like this. I still have people
who tell me it's the future. I feel like I'm
(07:48):
going insane. But as a result of AI being a
nearly entirely vibe spaced economy, the pale horses of its
apocalypse will be vibe shifters rather than defined events that
would logically change things. Remember Deep Seek, that was a
clunky story. So you had a Chinese model developer that
may be cheaper, it was cheaper to train, much cheaper
to train, but still cheaper to train, and their model
(08:11):
might be cheaper, and it is comparable. I mean, I've
certainly made my hay with the episodes and interviews that
did around it, but I surprise that shocked the market.
There are bigger, nastiest stories. But if that can do
it well, basically anything could one thing that really spreads
like information poison into the heads of business idiot's everywhere
who are saying AI now please without really understanding what
(08:34):
it does. It's unlikely to be one big pop but
several little doots from the bubble deflating. So let's get
to it. Here are the science to look out for,
freshly updated, and if you have any ideas, please do
reach out. I'd love to hear from you. We'll start
with an obvious one. Any price increases or decreases are
open AI and Anthropic. I called these increases in August,
and they had decreases because, as I've mentioned in the
(08:56):
subprime AI crisis, there is now a race to the
boond for model developers. Open Ai cut the price of
their own through Reasoning model by eight percent in June
in an attempt to undercut Anthropics claud for Opus, which
launched May twenty second, I believe, and we've already begun
to see price increases too. Anthropic added service theres and
open ai priority processing for enterprise customers to give them
(09:17):
uninterrupted service in June. And I must be clear when
I say enterprise, I mean any AI company that has
customers at scale. So any Sphere, Cursor, Glean and the like,
they are enterprise customers and they are very likely having
to pay these prices. Now here's another one. Anthropic and
open Ai may move away from monthly subscriptions, and indeed
(09:37):
ANYAI company may do this. This is a huge payer
horse when companies start moving away from simple business models,
so twenty bucks one hundred bucks a month, or they
start changing those so the returns on a sort of
returns the actual usership isn't obvious. Isn't obvious how much
you can or can't use. That's a sign that the
company is trying to contain costs and indeed fuck with
(10:00):
their customers a bit. And we've already seen a little
bit of this with how Cursor changed their pricing or
Claude Max the one hundred dollar or two hundred dollars
a month subscription from Anthropic, which has now changed things
to say you get more usage at the higher tiers
than the twenty dollars a month pro subscription. How much
more it isn't clear. Go to Claude subreadit. You'll see
a lot of people who are constantly saying, I don't
(10:21):
know what the rate limits are, and that's working as
intended by the way Anthropic is tweaking things very clearly
on the back end, we do not know what they are.
There are rumors that they are quantizing models, so making
them smaller, dumber, cheaper to run, but still doing comparable things,
or just not having as much access within peak hours.
These are unsubstantiated rumors, but I've seen enough claims of
(10:43):
them that they're worth mentioning. These are signs that things
are getting bad, or that they need to make things
more profitable. And really, any and all cost increases on
consumers by any AI service are a pay or horse,
as they suggest the company in question is trying to
deal with these ruinous costs. Remember, there are no profitable
AI companies. It's fucking crazy. We are three years into
(11:05):
this dog shit and there's none of them. Okay, surge AI.
They are an AI data training company. That does not matter.
It does not matter. If you've got a car that
has a horrible fuel economy. You don't point out how
well oil is selling to say that the car is good.
The different things anyway, Any and all rate limits that
(11:26):
any AI startup are a huge pay or horse because
these companies are spending a shit ton of money and
they're having to run these massive infrastructural operations to keep
things going. Those things are expensive. Power in particular is expensive,
so any mediating those costs is necessary. If you see
it with other companies, it's even worse because it means
(11:46):
that open ai and Anthropic are turning the screws on them. Now.
Another obvious one, of course, is any funding of revenue
problems from the remaining AI software companies Glean, Harvey, Alpha Sense,
any sphere who makes Cursor as I mentioned, or replet
for example. It's just the funding required to keep these
companies going is running out, and their business models aren't working.
And I want to make one real clear point here.
I'm kind of repeating myself, but it's necessary. These companies
(12:09):
are symbolic of whether generative AI will work. I realized
chet GPT is the big sexy one. But if you
can't build software on GENERATIVEAI and sell it for a profit,
there is no industry here. Every single major cloud computing
revolution has started because there is profit, and fucking hell,
it's nothing like Amazon Web Services when it grew. I'm
(12:31):
tired of hearing this point. I think I have to
do a thing about it because I'm fucking sick of it.
It's nothing to do with it, nothing, It's not remotely similar.
The only similar thing is that goddamn data centers. God
calming down. But on the subject to data centers, any
delays to Stargate or Amazon and Anthropics new Carlisle, Indiana
(12:53):
build out, both Anthropic and OpenAI are running into capacity issues.
This is documented well both by the companies and reporting
from outs like the Information. And they need these projects
to happen because right now it's very obvious Microsoft is
not going to expand their infrastructure for Open AI and
Anthropic well, they need Amazon to do it. But data
centers don't grow like weeds. They take forever to build.
(13:16):
I don't even know when the Carlysle Indiana data center
is going to get built. Fucking hell, what a mess.
Every reason I must think about this, it's such a mess,
all right. One final pale horse, and this is my
favorite one. Anything that happens with soft Bank and their
ability to raise money is a big pale horse the
paylist of them all. Actually, because soft Bank is critical
to everything. Soft Bank is the money behind open Ai.
(13:39):
Soft Bank is the money behind Stargate. Soft Bank is
financially responsible for Stargate, by the way, And if open
Ai doesn't move in to Stargate, and indeed if Stargate
never happens, Oracle gets left with forty billion dollars of
chips unused and Cruso, who they have to pay a
billion dollars I think, have a fifteen year lease with them.
(14:00):
What a mess. But as I've said, the actual bubble
bursting will be slow, annoying and unsatisfying at times. But
these pale horses are the signs that things are falling apart.
I will, as ever keep you up to date on
when these signs are happening, what they mean, why you
should care. I'll probably say fucking shit a few times
when I do, so, really appreciate you, love you all,
Thanks for listening.
Host
Ed Zitron
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