Ed Zitron's Where's Your Ed AtOpenAI Bubble, Lehman Bros. moment
24/7 Wall St.
ASML increased its sales forecast for the second time in 2024 due to strong orders for advanced chipmaking tools, according to 24/7 Wall St. An unverified report claims OpenAI loses $1.69 per dollar of revenue. Analyses of related AI ventures such as xAI differ sharply on implications for market dynamics and oversight.
Unverified losses at OpenAI and reported turmoil at xAI illustrate risks of billionaire-driven AI lacking public accountability and regulatory guardrails.
“concentration of profits among suppliers and externalized supply-chain costs”
Conservative
Media emphasis on xAI directionlessness contrasts with softer coverage of OpenAI's capital burn, revealing selective scrutiny of deregulatory ventures.
“market execution and capital allocation rewarded over narrative control”
Libertarian
Loss ratios and forecast revisions function as price signals that allocate resources according to individual risk assessments rather than state mandates.
“voluntary contracting and competition over preemptive oversight”
Devil's Advocate
All framings accept unverified premises about xAI and OpenAI while ignoring concrete variables such as cluster access and retention data.
“operational specifics over ideological narrative preference”