Business · 1h ago
AI Spending Bubble Debate: $800B Circular Investments vs Real Demand
Big Tech is spending $725B annually on AI, with $800B in interlocking investments among Nvidia, OpenAI, and cloud providers, raising bubble concerns. Enterprise token costs are pressuring margins, with Microsoft reportedly testing cheaper DeepSeek models. Yet cloud revenue surges 60% and Anthropic hits $30B run rate, showing genuine demand.
Meridian48 take
The circular investment critique is valid, but the revenue growth at Anthropic and cloud providers suggests real demand, not just hype—though cost pressures could burst the bubble if enterprise adoption stalls.
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Bubble or not? The money loop, the token revolt, and why the AI demand is still real →
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