Apple Will 'Watch Everything Burn' When the AI Bubble Bursts
Points and comments are a snapshot, not live.
Ed Zitron argues the AI bubble will burst, costing consumers via higher hardware prices.
Ed Zitron, an AI skeptic, argues the large language model industry has broken economics. He says AI companies subsidize token costs far below actual expenses, citing OpenAI's $20.9 billion loss on $13.07 billion revenue in 2025. Data center construction requires hundreds of billions in debt, with few paying customers beyond unprofitable OpenAI and Anthropic. This capital expenditure has doubled DRAM prices, raising Mac, iPad, and iPhone costs. Zitron claims Apple, spending only $14 billion on AI versus hyperscalers' $650+ billion, will watch the collapse from the sidelines, possibly benefiting.
What commenters are saying
Commenters split on Zitron's credibility. Supporters appreciate a well-argued counter-narrative to AI hype, citing evidence like OpenAI's losses. Critics deride him as a crank and anti-AI propagandist who selectively uses data, moves goalposts when wrong, and misunderstands technology. A key criticism notes that subscription maxing costs do not prove unprofitability, as average use may still be profitable, similar to gyms.