August 4, 2026
Bubble trouble, comment carnage
The AI Demand Bubble
Critics say AI money is chasing its own tail — and commenters are fighting over whether it’s a scam or just growth
TLDR: The article claims Big Tech’s AI boom may be inflated by companies funding AI startups that then spend that money back on Big Tech’s services. Commenters were split between “this is a real warning sign” and “this guy is a professional doomer,” making the backlash almost as big as the story.
The latest AI bubble broadside didn’t just accuse Big Tech of overselling artificial intelligence — it lit up the comments with a full-blown credibility war. Writer Ed Zitron argues that Amazon, Google, and Microsoft are making their cloud businesses look healthier than they really are by leaning on spending from OpenAI and Anthropic, two money-losing AI companies that are also being funded by those same tech giants. In plain English: critics say the companies may be pouring cash into startups that then spend that cash right back on their cloud services, making the whole thing look more successful than it is.
But the real fireworks came from readers, who split into two camps: the doomers and the eye-rollers. One side said the spending still makes sense if AI keeps growing and eventually replaces existing businesses. The other side went straight for Zitron himself, with commenters asking why he’s suddenly everywhere, while others mocked his record and background, basically saying, “Why are we taking market prophecy from a PR guy?” One especially savage jab called him “the living human embodiment of the Gell-Mann Amnesia effect,” which is internet-speak for “sounds smart until it’s your area of expertise.”
The mood? Equal parts panic, popcorn, and meme energy. Even people open to the idea that AI firms could hit turbulence were rolling their eyes at the idea that AI is going away. The comments weren’t just debating the article — they were debating whether the anti-AI backlash has become its own influencer economy.
Key Points
- •The article says media coverage of Amazon, Google, and Microsoft earnings treated strong cloud growth as proof that AI investments were paying off, despite limited AI-specific revenue disclosure.
- •It states Microsoft reported a $37 billion AI run rate in Q3 FY2026 but did not provide comparable AI payoff details in Q4.
- •The article argues AWS, Azure, and Google Cloud revenue includes many non-AI products and customers, so overall cloud growth should not be equated directly with generative AI demand.
- •It claims Anthropic and OpenAI account for a large share of recent AI-related cloud revenue growth across hyperscalers.
- •The article cites recent funding figures including Google investing $10 billion in Anthropic with up to $30 billion more possible, Amazon investing $5 billion in Anthropic, and a total of $50 billion into OpenAI.