Create God and Ask Him for Money
This is obviously a bubble Jim Rickards, a former adviser to the CIA and Pentagon, warns that the United States is currently facing a tectonic economic crisis driven by an unprecedented bubble in Artificial Intelligence (AI). According to his analysis, this impending crisis has the potential to be more destructive than the dot-com crash, the 2008 financial crisis, and the pandemic-related market crashes combined. He is not alone in his dire outlook; veteran investor Jeremy Grantham has warned, "This is obviously a bubble. The probabilities it doesn't burst are slim to none. And when it does, it could be an economic catastrophe unprecedented in the last 97 years" . Furthermore, former SEC Chairman Gary Gensler has stated that "the next financial crisis will come from AI". Create God and ask him for money The Unprecedented Scale of the AI Bubble The current market relies dangerously on a single sector, with the AI bubble estimated to be 17 times larger than the dot-com bubble of the late 1990s. Many AI companies are burning through cash at an alarming rate. For instance, OpenAI is reportedly losing more than a billion dollars a month; as it is noted in the source, "for every dollar they make, they have to spend at least three". This massive cash burn led a Deutsche Bank analyst to observe, "No startup in history has operated with losses on anything approaching this scale". Despite the astronomical costs and high valuations, OpenAI’s CEO was quoted as previously saying, "I have no idea how we're going to generate revenue". Former Goldman Sachs banker and Bloomberg columnist Matt Levine summarized this extreme speculative mindset, noting, "The business model they believe they need seems to be create God and ask him for money". "Subprime AI" and Toxic Debt Just as the 2008 financial crisis was fueled by toxic subprime mortgages, the AI boom is being fueled by dangerous debt structures used to fund massive data centers. Private equity firms are financing data centers as r