AI Industry Burns Through Hundreds of Billions With No Profitability Path as $2 Trillion Revenue Gap Threatens Economic Catastrophe

Sep 28, 2025
pluralistic

Summary

AI companies burn through hundreds of billions in investor funds with no profitability path, needing to generate $800 billion to $2 trillion by 2030 while currently making only $45 billion annually, creating a massive bubble that threatens economic catastrophe affecting hundreds of millions when it inevitably bursts.

Key Points

  • AI companies are burning through hundreds of billions in investor money with no path to profitability, creating a bubble larger than historic economic disasters like the 19th century UK rail bubble
  • The AI industry needs to generate $800 billion to $2 trillion in revenue by 2030 to justify current investments, while currently making only $45 billion annually based on questionable accounting practices
  • When the AI bubble bursts, it will trigger an economic catastrophe affecting hundreds of millions of people, leaving behind useful AI tools that can be purchased cheaply after the crash

Tags

Read Original Article