The Case Against Generative AI (Part 4)
Better Offline
Cool Zone Media and iHeartPodcasts
4.6 • 687 Ratings
🗓️ 3 October 2025
⏱️ 29 minutes
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Summary
In part four of this week’s four-part case against generative AI, Ed Zitron walks you through how there’s literally not enough money in the world to pay for OpenAI’s estimated $1 trillion four-year burn, and why the media tell the truth about AI to save retail investors.
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Transcript
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| 0:00.0 | This is an IHeart podcast. |
| 0:02.5 | Guaranteed human. |
| 0:06.3 | All right, we're back. |
| 0:09.8 | I'm Ed Zittron and this is Better Offline. |
| 0:28.5 | This is the fourth and final episode of this four-part series where I dissect in excruciating comprehensive detail, the AI bubble and tell you why I think its implosion is inevitable. |
| 0:33.8 | We're at the end, which is fitting, because in this episode, we're going to talk about why and how this entire sham dies. |
| 0:39.3 | Again, if you're jumping in now, start from the beginning. We talk about a lot of things, and they all kind of threads together. I know, I know, you want to hear my explanation of how open AI is fucked with a capital fuck, but we've got to lay the groundwork to get there. get there. Okay, got up, good, good, good, we're good, we're good, we're good, we're good, you're ready, all good, you're good, me, yep, okay, we'll begin. One of the comfortable |
| 0:57.8 | lies that people tell themselves is that the AI bubble is similar to the fiber boom or the dot-com |
| 1:02.2 | boom or Uber or that we're in the growth stage or that this is what software companies do, |
| 1:06.2 | they spend a bunch of money, then pull the profit lever. The thing is, this is nothing like anything you've ever |
| 1:11.9 | seen before, because this is the dumbest shit the tech industry has ever, ever done. AI data |
| 1:17.4 | centers are nothing like fiber because there are very few actual use cases for these GPUs |
| 1:21.8 | outside of AI, and none of them are remotely hyperscale revenue drivers. As I discussed a month or so ago, Data Center |
| 1:28.5 | Development accounted for more of America's GDP growth than all consumer spending combined |
| 1:32.7 | in the first half of 2025, and there really isn't any demand for AI in general, let alone |
| 1:37.4 | at the scale that these hundreds of billions of dollars are being sunk into. The conservative |
| 1:41.7 | estimate of capital expenditures related to data centers is around |
| 1:44.7 | $400 billion, but given the $50 billion in a quarter in private equity invested, I'm going |
| 1:50.2 | to guess it breaks half a trillion, all to build capacity for an industry yet to prove itself. |
| 1:54.8 | And this whole Nvidia Open AI $100 billion funding news should only fill you full of dread, |
| 2:00.3 | but also it isn't fucking |
| 2:01.2 | finalized. Stop reporting as if it's done. I swear the fucking... Anyway, good. According to CNBC, |
... |
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