Lever Time It’s Not An AI Bubble. It’s A Black Hole.
8 snips
Dec 11, 2025 
Tech journalist Ed Zitron, known for his critical take on the tech industry, teams up with Sruthi Pinnamaneni, journalist and co-creator of the Search Engine podcast, to dissect the current AI frenzy. They discuss the alarming stock growth of AI companies and the risk of a market collapse. Zitron highlights the excess of unused GPUs due to overproduction, while Pinnamaneni reveals the eerie state of data centers. They warn that a quick market correction may be necessary to reset expectations and prevent widespread financial damage.
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Warehoused GPUs Waiting For Power
- Ed Zitron confirmed sources that NVIDIA shipped roughly 6 million Blackwell GPUs, many likely sitting unused in warehouses.
- He described Microsoft executives admitting they have chips in inventory that lack power capacity to run them.
Circular Financing Inflates GPU Demand
- Chip vendors, NeoClouds, and their financiers have created circular financing where debt funds more GPU purchases that collateralize more debt.
- That loop resembles past corporate finance distortions that can amplify losses when revenues disappoint.
Prefer A Fast Repricing
- Hope for a quick market correction because a faster repricing forces necessary tech industry recalibration.
- Faster busts reduce prolonged capital misallocation and precipitate overdue corporate accountability.
