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Is the AI Boom a Bubble? | Durham News
The AI boom, sparked by ChatGPT’s viral launch, is fueling a $758 billion global spending spree by 2029—but critics like Ed Zitron warn it’s a bubble built on hype, not profit. OpenAI’s $50 billion+ compute costs and reliance on massive funding rounds exemplify unsustainable spending, while hyperscalers like Amazon and Google are racing to stay ahead, creating a cycle of fear-driven investment. Zitron calls it the biggest capital misallocation in history, driven by greed and the illusion of replicating OpenAI’s success—predicting a painful reckoning when funding tightens and returns don’t…
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