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Ed Zitron Predicts OpenAI Collapse as AI Bubble's 'Lehman Moment' With $50B Annual Compute Spending

AI Industry News

2026-07-17 16:01:37

According to Ed Zitron's 15,000-word Substack essay published on Thursday (July 16), the AI skeptic and author of "The Hater's Guide to the AI Bubble" predicts OpenAI will experience its "Lehman moment," marking the end of the AI boom and awakening investors from what he calls a cult-like frenzy. Zitron argues the question is not whether OpenAI will collapse, but when, citing the company's projected annual compute spending exceeding $50 billion and the need for three additional funding rounds through 2035. He claims OpenAI's failure stems from an unsustainable business model, weak subscription and advertising revenue, and service costs too high to profitably scale. In contrast, Oaktree Capital co-founder Howard Marks stated in a Wednesday podcast interview that he has grown more bullish on AI technology after recognizing its unprecedented capabilities in self-analysis, humor adaptation, and personalized responses.

Disclaimer: The information on this page may come from third-party sources and is for reference only. It does not represent the views or opinions of Gate and does not constitute any financial, investment, or legal advice. Virtual asset trading involves high risk. Please do not rely solely on the information on this page when making decisions. For details, see the Disclaimer.

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