AI bubble alert 🚨
US Big Tech just burned $760B on AI this year (up from $156B in 2022). Projected $5.5T through 2030.
Here's why this screams bubble:
1️⃣ AI pricing collapsed 90% in 30 months. What took computers 15 years happened in 3. Revenue per dollar spent is cratering.
2️⃣ ROI is a joke. $25B revenue vs $250B spent in 2025 = 10 cents per dollar. MIT study: 95% of companies investing in AI made ZERO profit.
3️⃣ China just dropped Kimi, a model outperforming top US AI at 1/10th the cost. If you can build better for 90% less, that $5.5T is dead money.
The real risk isn't demand. It's AI becoming commoditized BEFORE it's profitable. Tech stocks now trade at dot-com 2000 valuations. Hedge funds dumping tech at record pace.
AI will change the world. Doesn't mean it's a good investment at these prices. Remember 2000.
US Big Tech just burned $760B on AI this year (up from $156B in 2022). Projected $5.5T through 2030.
Here's why this screams bubble:
1️⃣ AI pricing collapsed 90% in 30 months. What took computers 15 years happened in 3. Revenue per dollar spent is cratering.
2️⃣ ROI is a joke. $25B revenue vs $250B spent in 2025 = 10 cents per dollar. MIT study: 95% of companies investing in AI made ZERO profit.
3️⃣ China just dropped Kimi, a model outperforming top US AI at 1/10th the cost. If you can build better for 90% less, that $5.5T is dead money.
The real risk isn't demand. It's AI becoming commoditized BEFORE it's profitable. Tech stocks now trade at dot-com 2000 valuations. Hedge funds dumping tech at record pace.
AI will change the world. Doesn't mean it's a good investment at these prices. Remember 2000.