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AI Bubble: ‘This is a fake industry’ | Ed Zitron

The Tech Report

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“1% of customers hold up everything else.”

Author of Where’s Your Ed At and host of the Better Offline podcast Ed Zitron joins The Tech Report’s Isaac Pound to talk about the instability of the AI industry as new Ramp statistics reveal that the 80% of OpenAI and Anthropic’s revenue come from 1% of their customers.

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20 Comments

@J--Dubs 1 month ago

80% revenue from 1% of customers sounds like the cost structure of a predatory priced mobile game.

@KhyberPunk 1 month ago

"Number so big, number go up" is an absolute guilty pleasure bit

@kimdevilbiss5312 1 month ago

What if you took a trillion dollars and paid PEOPLE to code and chat and write. They would pay taxes and buy burritos.

@veganbutcherhackepeter 1 month ago (edited)

And wouldn't you know, YouTube is showing me an AI generated ad trying to sell me courses for an AI academy during this. I want off of this dystopian nightmare planet.

@jim.m.milton 1 month ago

Ed, congratulations on the Diary of a CEO podcast.

No one has ever seen Steve so combative before, and you handled it beautifuly.

It was obvious he was trying to get you, but you uno reverse carded him.

Well done!

@kevingluys3063 1 month ago

If mining companies started digging holes with this much spending and this little profit, we would be in a Junji Ito story.

@cpm1003 1 month ago

As the CEO of a very small manufacturing company, I would not trust any supplier who even mentions AI.

@Prototype-357 1 month ago

I saw a post that said animation companies in Japan are having people that want to work there draw with pen and paper during their job interviews. I wish every single industry adopted that test, only hire people that proved they can do the job.

@margarita6700 1 month ago

If you haven't seen the interview with the former Open AI employee who is a cybersecurity engineer on Amanpour, I highly recommend it. She rips into the narrative that Open AI is pedaling about their recent hack into Huggingface. AI is not "sentient", and doesn't act on its own. AI is code, much like malware in the sense of the hack, that is DIRECTED by HUMANS. And the HUMANS need to be held accountable.

@motionthings 1 month ago

I bet that 1% is from other AI startups distilling openAI's and Anthropic models :p

@EM4TT4 1 month ago (edited)

You know when Jensen is saying that we achieved AGI already, yet my LLM is dumb as a shoe

@CarlSpackler-e4d 1 month ago

The gap between forecast demand and realized demand is going to be truly epic.

@charleselkins4546 1 month ago (edited)

"Their dick-head friends..." A perfect characterization of a lunch meeting in most C-suites in the United States. For so long corporations have profited by stoking fear, greed, and rapacious consumerism among the little people and now it is coming back to hopefully destroy some of the worst of them.😂

@jvervaeck 4 weeks ago

"What other industries could have done incredible things if you sunk a trillionn dollars into them?" Great question Ed!

@AnthonyGiallourakis 1 month ago (edited)

If someone made a bunch of Ed Zitron action figures, take my money. I want the numbered edition, autographed please.

@michaelfarrow5817 1 month ago

Problem is, these people are completely unused to consequences. CoreWeave should be a cautionary tale but they got away with it and pivoted. Silicon Valley pays for users and is happy to have a company lose money for years.

Then this whole mentality has seeped into the wider business world.

@robertdangelo5246 1 month ago

"even if it was profitable it's still horrible"
Well said ed

@ralphhardie7492 1 month ago

Well done Zitron 🤣
CEO Steven got his clock cleaned
😂😂🎉🎉🎉😂😂

@frankfontein1033 1 month ago (edited)

In the end it all comes down to the law of 'nuts and bolts'. AI creates a stunning bolt and nut, 3D images exploding in wild colours, videos of nuts marching in space, meetings about bolts, reports, spreadsheets and then someone stands up and asks "where are my physical nuts and bolts so that I can actually build something?"

@BrianWhitmarsh 1 month ago

Companies are wasting money because they think AI is more efficient than human employees, when they need to realize that AI should be the last resort only if you can't find human employee candidates that will work for you. It is bizarre we are throwing real intelligence to the curb in favor of a failed attempt at artificial intelligence.