The Quick 1, 2, 3
First, we’re witnessing the strangest circular economy ever: Nvidia is essentially funding OpenAI to buy Nvidia’s own chips, while AI valuations soar past dot-com bubble levels. Second, the numbers tell two conflicting stories with companies like Anthropic seeing 80x revenue growth while simultaneously laying off nearly 183,000 tech workers in 2025 alone. Third, even the AI evangelists are pumping the brakes, with Sam Altman admitting investors are “overexcited” about AI just as Michael Burry starts shorting the whole party.
When Your Drug Dealer Becomes Your Loan Officer
I’ve covered enough market cycles to know when something smells fishy, and this Nvidia-OpenAI arrangement has that distinct aroma. Picture this: Nvidia cuts a $100 billion check to OpenAI, who then turns around and spends it on… Nvidia chips. It’s like watching someone play financial Twister while blindfolded.
The math is getting bonkers. AI spending is set to blast past $1.5 trillion in 2025, making the dot-com bubble look like a neighborhood lemonade stand. And it’s happening at warp speed. Remember how the internet took years to build momentum? AI went from curiosity to economic force faster than I can update my LinkedIn skills section.
The Tale of Two Markets
Here’s where my head starts spinning. On one hand, you’ve got Anthropic jumping from $87 million to $7 billion revenue in a single year. That’s not hype, that’s actual money changing hands. OpenAI hit $13 billion in revenue, and even the skeptical folks at JP Morgan are saying “we don’t think we’re in a bubble now.”
But then there’s the other side of this coin, and it’s darker than week-old coffee. Tech companies have axed nearly 183,000 jobs across 626 companies this year. Salesforce flat-out said AI could handle 50% of their customer support work and cut 4,000 positions. No sugar-coating, no corporate speak about “restructuring for the future.” Just brutal honesty.
The Great Contradiction
We’re living through the weirdest economic moment I’ve witnessed. Billions flooding into AI companies while those same technologies justify mass layoffs. It’s like watching a gold rush where the miners are also the ones being replaced by better mining equipment.
Tools like Sudowrite are already transforming how we approach creative work, blurring the lines between human and machine capabilities in ways that would have seemed impossible just two years ago.
Michael Burry, the guy who saw 2008 coming from miles away, is now betting against Nvidia. When the oracle of financial doom starts making moves, maybe it’s time to pay attention. Or maybe, just maybe, we’re watching the birth of something genuinely transformative that just happens to look terrifying from ground level.
Either way, buckle up. This ride is far from over.