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Stop your grinning and drop your linen.

I'm Ed Zetron and this is Better Offline.

Better Offline. Yeah. Welcome to the final part of our three-part haters' guide to the AI bubble, where we've been talking about the growing cracks emerging in the industry and the potential contagion to the wider economy that a pullback of generative AI spending will cause. And I must be clear, things are bad.

The vibes are rancid.

I spent the past two episodes and will spend much of this episode explaining why,

but I just want to recap something from the first part of this series.

Right now, seven companies, the magnificent seven,

account for the value of nearly 35% of all of US stocks,

and the biggest of these companies is Nvidia, which has gotten fat off the back of the AI% of all of US stocks, and the biggest of these companies is

Nvidia, which has gotten fat off the back of the AI bubble. Today, a disproportionate amount

of Nvidia's revenue, 88% of it, is coming from the other members of the Magnificent 7, and

their purchases of the Enterprise GPU is designed to power the compute heavy A applications

that you're hearing about all day. If and when they pull back, invidia will sink.

So, too, will the other companies, especially when it becomes evident that they've spent

nearly half a trillion dollars in two years on bugger all.

It'll be an apocalyptic shedding of value.

They won't die, but it'll be the likes of which we haven't seen since the dark days of 2007 and 2008 for those companies.

I don't know about the global banking system imploding, but I also can't say it won't. I just, I don't know.

But what I do know is tech is going to take such a precipitous haircut that you're going to see scissor gashes in the man's bald head.

...