Hyperscalers have spent over a trillion dollars on AI infrastructure, but their primary customers—OpenAI and Anthropic—are unprofitable and funded by those same hyperscalers, creating an unsustainable financial loop with no real demand underlying it.

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The AI industry's massive spending boom is built on a foundation with no real demand to support it. Hyperscalers have spent over a trillion dollars on AI infrastructure, but their only meaningful customers are OpenAI and Anthropic — two deeply unprofitable companies kept alive by the same hyperscalers funding them, creating a circular, unsustainable financial loop heading toward collapse.

The AI Industry Is Losing

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