Ed Zitron

Ed Zitron

@edzitron.com

British, But In Las Vegas and NYC ezitron.76 Sig Newsletter - wheresyoured.at https://linktr.ee/betteroffline - podcast w/ iheartradio Chosen by god, perfected by science CEO at EZPR.com

187.7K followers2.7K following32.1K posts

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Ed Zitron
@edzitron.com

Premium: The Hater's Guide To Blackstone, the world's largest asset manager that grew through exploiting financial crises and rental markets. With $200bn in AI data centers and investments, it may be the first time Blackstone is left holding the bag. www.wheresyoured.at/premium-the-...

wheresyoured.athttps://www.wheresyoured.at/premium-the-haters-guide-to-blackstone/For whatever reason, Blackstone founder and CEO Stephen A. Schwarzman has a thirty-chapter-long series called “My Personal History” that is, well, exactly what it sounds like — a financial…
Ed Zitron
@edzitron.com

Going to take a week off premium, and free newsletter likely delayed until Wednesday due to a family situation. Back to the normal rotation next week

Ed Zitron
@edzitron.com
Techmeme@techmeme.com

Elon Musk says SpaceX closed $40B in GPU debt, debt markets have shut off credit for AI data center firms, and 200+ neoclouds face "death and consolidation" (Elon Musk/@elonmusk) Main Link | Techmeme Permalink

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Ed Zitron
@edzitron.com

TD Cowen reported last week that NVIDIA and Oracle are doing some sort of vendor financing/thing where Nvidia leases capacity then sub leases it to Oracle. They’re scraping the bottom of the barrel. The big trigger would be if it’s downgraded. bsky.app/profile/pzyl...

Zylox@pzyl.bsky.social

What is the path to Oracle tanking after that

Ed Zitron
@edzitron.com

If neocloud financing is dead that means SB Energy and Nscale’s IPOs are dead. Not sure what Lambda does about its IPO either. Super Micro already backstops one of their leases!

Ed Zitron
@edzitron.com
Techmeme@techmeme.com

Elon Musk says SpaceX closed $40B in GPU debt, debt markets have shut off credit for AI data center firms, and 200+ neoclouds face "death and consolidation" (Elon Musk/@elonmusk) Main Link | Techmeme Permalink

Ed Zitron
@edzitron.com

By the way: I have been saying for a while that the debt markets will be what drags this era to its knees. Every single neocloud needs endless debt and will need it for the foreseeable future. Coreweave will burn, it is a time bomb as I’ve been saying a year and a half.

Ed Zitron
@edzitron.com
Bloomberg News@bloomberg.com

Despite the significant investments ploughed into artificial intelligence it has provided “zero payoff” to corporate America outside of technology, according to Apollo's Chief Economist Torsten Slok. Read more: bloom.bg/3UO2c30 📷: Victor J. Blue/Bloomberg

Ed Zitron reposted

azeke57.bsky.social
@azeke57.bsky.social

Replying to @edzitron.com

Ed, you made Yahoo Finance. The comment section was full of clueless clowns as usual. They have no idea whats coming. finance.yahoo.com/technology/a...

finance.yahoo.comAI bear slams Nvidia's GPU pitch: 'There's not scarcity other than that which is created by Jensen Huang'Ed Zitron, CEO of public relations firm EZPR and well-known critic of the AI spending boom, says Nvidia is creating the scarcity it sells against.
Ed Zitron
@edzitron.com
Techmeme@techmeme.com

Outside of tech there has been no financial payoff to US companies for using AI, now viewed as a margin-hurting cost center, as VC-backed firms burn more tokens (Torsten Slok/Apollo Global Management) Main Link | Techmeme Permalink

Ed Zitron
@edzitron.com

Premium: The Hater's Guide To Blackstone, the world's largest asset manager that grew through exploiting financial crises and rental markets. With $200bn in AI data centers and investments, it may be the first time Blackstone is left holding the bag. www.wheresyoured.at/premium-the-...

wheresyoured.athttps://www.wheresyoured.at/premium-the-haters-guide-to-blackstone/For whatever reason, Blackstone founder and CEO Stephen A. Schwarzman has a thirty-chapter-long series called “My Personal History” that is, well, exactly what it sounds like — a financial…
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Ed Zitron
@edzitron.com

What I do know is that, if AI doesn't work out, Blackstone will be in a world of pain. It has made too many bets, too many of them being loans, and I could see a mass failure of its AI investments spooking those who entrust it with their money. www.wheresyoured.at/premium-the-...

Ed Zitron
@edzitron.com

Blackstone has thrived off its image as the world's biggest and most successful alternative asset manager, and as an aggressive opportunist. Something about AI has put it over its skis, and there's a good chance it takes tens of billions of losses. www.wheresyoured.at/premium-the-...

Ed Zitron
@edzitron.com

Premium: The Hater's Guide To Blackstone, the world's largest asset manager that grew through exploiting financial crises and rental markets. With $200bn in AI data centers and investments, it may be the first time Blackstone is left holding the bag. www.wheresyoured.at/premium-the-...

wheresyoured.athttps://www.wheresyoured.at/premium-the-haters-guide-to-blackstone/For whatever reason, Blackstone founder and CEO Stephen A. Schwarzman has a thirty-chapter-long series called “My Personal History” that is, well, exactly what it sounds like — a financial…
View full thread
Ed Zitron
@edzitron.com

Blackstone's data center assets have swelled to over $200bn (larger than its traditional infrastructure holdings) and it has become an investor and lender to neoclouds and model labs alike, meaning its exposure to the AI bubble is likely much larger. www.wheresyoured.at/premium-the-...

Ed Zitron
@edzitron.com

I tried my best to pull together every single Blackstone AI deal, and know that I likely missed a few, as it appears to have invested in basically every part of the industry - power, data centers, AI labs, software, and even a PE firm *that sells AI*. www.wheresyoured.at/premium-the-...

Ed Zitron
@edzitron.com

Premium: The Hater's Guide To Blackstone, the world's largest asset manager that grew through exploiting financial crises and rental markets. With $200bn in AI data centers and investments, it may be the first time Blackstone is left holding the bag. www.wheresyoured.at/premium-the-...

wheresyoured.athttps://www.wheresyoured.at/premium-the-haters-guide-to-blackstone/For whatever reason, Blackstone founder and CEO Stephen A. Schwarzman has a thirty-chapter-long series called “My Personal History” that is, well, exactly what it sounds like — a financial…
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Ed Zitron
@edzitron.com

Take, for example, its 2010s flirtation with residential property, where it spent big on foreclosed homes and buying out existing landlords, jacked up rents, neglected repairs, and even made the UN so mad it send it a sternly-worded letter. www.wheresyoured.at/premium-the-...

Ed Zitron
@edzitron.com

Blackstone's largely wound down his residential property business, in part because it's realized that there's far more money to be made in private credit and equity. It's now focused both of them on sinking hundreds of billions of its capital into AI. www.wheresyoured.at/premium-the-...

Ed Zitron
@edzitron.com

Premium: The Hater's Guide To Blackstone, the world's largest asset manager that grew through exploiting financial crises and rental markets. With $200bn in AI data centers and investments, it may be the first time Blackstone is left holding the bag. www.wheresyoured.at/premium-the-...

wheresyoured.athttps://www.wheresyoured.at/premium-the-haters-guide-to-blackstone/For whatever reason, Blackstone founder and CEO Stephen A. Schwarzman has a thirty-chapter-long series called “My Personal History” that is, well, exactly what it sounds like — a financial…
View full thread
Ed Zitron
@edzitron.com

Mistakes happen when you're big, and Blackstone is very big indeed. It's the world's largest alternative asset manager, the world's largest commercial landlord, and the biggest data center investor. But more than anything else, it's an opportunist. www.wheresyoured.at/premium-the-...

Ed Zitron
@edzitron.com

Premium: The Hater's Guide To Blackstone, the world's largest asset manager that grew through exploiting financial crises and rental markets. With $200bn in AI data centers and investments, it may be the first time Blackstone is left holding the bag. www.wheresyoured.at/premium-the-...

wheresyoured.athttps://www.wheresyoured.at/premium-the-haters-guide-to-blackstone/For whatever reason, Blackstone founder and CEO Stephen A. Schwarzman has a thirty-chapter-long series called “My Personal History” that is, well, exactly what it sounds like — a financial…
Ed Zitron
@edzitron.com

The defensiveness of AI boosters over calling this morally reprehensible is remarkable, they really do not like it when anyone has any kind of principles or when they care about something lol

Ed Zitron@edzitron.com

As I said earlier on Yahoo Finance, Jensen Huang is channel stuffing to pump NVIDIA's revenues, forcing GPUs on customers months in advance and making everything more expensive for everyone. It's morally reprehensible. finance.yahoo.com/video/spacex...

Ed Zitron reposted

Ed Zitron
@edzitron.com

Joined @stephruhle.bsky.social on MSNOW to talk about the AI bubble, its differences to the Dot-Com Bubble, and how if AI "doesn't work out" it's everyone's problem, with retail investors making up 20% of the market's volume and having over $4.65tn in direct exposure to AI stocks.

Ed Zitron reposted

Ed Zitron
@edzitron.com

Free newsletter: In July, Apollo Economist Torsten Slok said that "AI better work out, or we have a problem." Facing ever-growing high-interest debt, negative-EBITDA AI labs and $200bn+ in warehoused GPUs, that's exactly what the AI industry has. www.wheresyoured.at/ai-had-bette...

wheresyoured.athttps://www.wheresyoured.at/ai-had-better-work-out/If you liked this piece, you should subscribe to my premium newsletter, and you can subscribe on the following links: $70 a year, $18 a quarter, or $7 a month. In return, you get a weekly premium…
Ed Zitron
@edzitron.com

Clammy Sammy mentioned

Ed Zitron@edzitron.com

Joined @stephruhle.bsky.social on MSNOW to talk about the AI bubble, its differences to the Dot-Com Bubble, and how if AI "doesn't work out" it's everyone's problem, with retail investors making up 20% of the market's volume and having over $4.65tn in direct exposure to AI stocks.

Ed Zitron
@edzitron.com

Joined @stephruhle.bsky.social on MSNOW to talk about the AI bubble, its differences to the Dot-Com Bubble, and how if AI "doesn't work out" it's everyone's problem, with retail investors making up 20% of the market's volume and having over $4.65tn in direct exposure to AI stocks.

Ed Zitron
@edzitron.com

wasn't the titanic famously NOT turned around?

FactPost@factpostnews.bsky.social

JD Vance on the economy: "You don't turn the Titanic around overnight"

Ed Zitron
@edzitron.com

this is abusive boomer grandparent/parent brain. I've known multiple different boomers that believe in something called "grandparents rights" too. You shouldn't have to talk to anyone you don't want to, especially if it's your parents

Michael Hobbes@michaelhobbes.bsky.social

This is a quietly metastasizing moral panic

Ed Zitron
@edzitron.com

I also wanted to pull out a special part of the piece: fuck Jensen Huang. By forcing customers to take early delivery of GPUs to boost quarterly revenues, he artificially inflated the price of RAM and every consumer electronic. What he and his hyperscale paypigs have done is morally reprehensible.

Ed Zitron@edzitron.com

Free newsletter: In July, Apollo Economist Torsten Slok said that "AI better work out, or we have a problem." Facing ever-growing high-interest debt, negative-EBITDA AI labs and $200bn+ in warehoused GPUs, that's exactly what the AI industry has. www.wheresyoured.at/ai-had-bette...

wheresyoured.athttps://www.wheresyoured.at/ai-had-better-work-out/If you liked this piece, you should subscribe to my premium newsletter, and you can subscribe on the following links: $70 a year, $18 a quarter, or $7 a month. In return, you get a weekly premium…
Ed Zitron
@edzitron.com

Free newsletter: In July, Apollo Economist Torsten Slok said that "AI better work out, or we have a problem." Facing ever-growing high-interest debt, negative-EBITDA AI labs and $200bn+ in warehoused GPUs, that's exactly what the AI industry has. www.wheresyoured.at/ai-had-bette...

wheresyoured.athttps://www.wheresyoured.at/ai-had-better-work-out/If you liked this piece, you should subscribe to my premium newsletter, and you can subscribe on the following links: $70 a year, $18 a quarter, or $7 a month. In return, you get a weekly premium…
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Ed Zitron
@edzitron.com

Allow me to finish with a question: Does any of this feel like the future? Are you witnessing the next industrial revolution? Or are you watching the spark that ignites the next financial crisis? And are you sufficiently angry at the people responsible? www.wheresyoured.at/ai-had-bette...

Ed Zitron
@edzitron.com

Free newsletter: In July, Apollo Economist Torsten Slok said that "AI better work out, or we have a problem." Facing ever-growing high-interest debt, negative-EBITDA AI labs and $200bn+ in warehoused GPUs, that's exactly what the AI industry has. www.wheresyoured.at/ai-had-bette...

wheresyoured.athttps://www.wheresyoured.at/ai-had-better-work-out/If you liked this piece, you should subscribe to my premium newsletter, and you can subscribe on the following links: $70 a year, $18 a quarter, or $7 a month. In return, you get a weekly premium…
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Ed Zitron
@edzitron.com

This piece distills something I've said repeatedly: that AI "working out" requires too many improbable things to happen, and that when the bubble bursts, it'll cause a supernova of pain across markets, economies, and (increasingly retail) investors. www.wheresyoured.at/ai-had-bette...

Ed Zitron
@edzitron.com

How perfect? How improbable? Well, if Anthropic is forced to IPO at the lower price of $1.5tn, it'll disappoint investors, reduce the amount of cash it can raise from the market, and it'll increase the amount of debt it takes on. Oh, and it'll screw OpenAI, too. www.wheresyoured.at/ai-had-bette...

Ed Zitron
@edzitron.com

Free newsletter: In July, Apollo Economist Torsten Slok said that "AI better work out, or we have a problem." Facing ever-growing high-interest debt, negative-EBITDA AI labs and $200bn+ in warehoused GPUs, that's exactly what the AI industry has. www.wheresyoured.at/ai-had-bette...

wheresyoured.athttps://www.wheresyoured.at/ai-had-better-work-out/If you liked this piece, you should subscribe to my premium newsletter, and you can subscribe on the following links: $70 a year, $18 a quarter, or $7 a month. In return, you get a weekly premium…
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Ed Zitron
@edzitron.com

In fairness, the whole "abandoning reason" has seemingly already happened. This late in the bubble, there is no consensus on how much a gigawatt of capacity should cost, and many of the projections thrown around exceed the limits of profitability. www.wheresyoured.at/ai-had-bette...

Ed Zitron
@edzitron.com

Profitability, of course, assumes that the customer for the compute exists, and they have customers. Unfortunately, OpenAI and Anthropic are overwhelmingly dependent on VC-backed startups, at a time when VC's underperforming and running out of cash. www.wheresyoured.at/ai-had-bette...

Ed Zitron
@edzitron.com

Free newsletter: In July, Apollo Economist Torsten Slok said that "AI better work out, or we have a problem." Facing ever-growing high-interest debt, negative-EBITDA AI labs and $200bn+ in warehoused GPUs, that's exactly what the AI industry has. www.wheresyoured.at/ai-had-bette...

wheresyoured.athttps://www.wheresyoured.at/ai-had-better-work-out/If you liked this piece, you should subscribe to my premium newsletter, and you can subscribe on the following links: $70 a year, $18 a quarter, or $7 a month. In return, you get a weekly premium…
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Ed Zitron
@edzitron.com

The GPU trade is the irrational core of the bubble, and the argument that hyperscalers are hoarding scarce commodities falls over when you see that *everyone* has billions in dark GPUs. NVIDIA seems to be channel stuffing, and we all suffer as a result. www.wheresyoured.at/ai-had-bette...

Ed Zitron
@edzitron.com

Free newsletter: In July, Apollo Economist Torsten Slok said that "AI better work out, or we have a problem." Facing ever-growing high-interest debt, negative-EBITDA AI labs and $200bn+ in warehoused GPUs, that's exactly what the AI industry has. www.wheresyoured.at/ai-had-bette...

wheresyoured.athttps://www.wheresyoured.at/ai-had-better-work-out/If you liked this piece, you should subscribe to my premium newsletter, and you can subscribe on the following links: $70 a year, $18 a quarter, or $7 a month. In return, you get a weekly premium…
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Ed Zitron
@edzitron.com

AI is also concentrated around a handful of companies, most notably NVIDIA, which is forecasting over $670bn in revenue next year, at a time when the debt its customers need to buy its chips is increasingly unaffordable as lenders sour on AI debt. www.wheresyoured.at/ai-had-bette...

Ed Zitron
@edzitron.com

It's now confirmed that Amazon has warehouses of GPUs that can’t be installed, with in some cases "no clear path to doing so" despite taking billions in deliveries monthly. The RAM crisis was created by NVIDIA to boost its revenues through early delivery. www.wheresyoured.at/ai-had-bette...

Ed Zitron
@edzitron.com

Free newsletter: In July, Apollo Economist Torsten Slok said that "AI better work out, or we have a problem." Facing ever-growing high-interest debt, negative-EBITDA AI labs and $200bn+ in warehoused GPUs, that's exactly what the AI industry has. www.wheresyoured.at/ai-had-bette...

wheresyoured.athttps://www.wheresyoured.at/ai-had-better-work-out/If you liked this piece, you should subscribe to my premium newsletter, and you can subscribe on the following links: $70 a year, $18 a quarter, or $7 a month. In return, you get a weekly premium…
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Ed Zitron
@edzitron.com

As I've written extensively in the past, the AI bubble is nothing like the dot com bubble. The scale and concentration is different, and a simple 20% correction across the main AI stocks would be worse than the worst day of the Dot Com crash. www.wheresyoured.at/ai-had-bette...

Ed Zitron
@edzitron.com

The AI bubble is sustained by vibes and hype, and both have started to sour, with Gartner saying that we have more compute capacity than demand, and that 80% of neoclouds will go out of business by 2030, adding there's not enough revenue to justify them. www.wheresyoured.at/ai-had-bette...

Ed Zitron
@edzitron.com

Free newsletter: In July, Apollo Economist Torsten Slok said that "AI better work out, or we have a problem." Facing ever-growing high-interest debt, negative-EBITDA AI labs and $200bn+ in warehoused GPUs, that's exactly what the AI industry has. www.wheresyoured.at/ai-had-bette...

wheresyoured.athttps://www.wheresyoured.at/ai-had-better-work-out/If you liked this piece, you should subscribe to my premium newsletter, and you can subscribe on the following links: $70 a year, $18 a quarter, or $7 a month. In return, you get a weekly premium…
View full thread
Ed Zitron
@edzitron.com

Free newsletter: In July, Apollo Economist Torsten Slok said that "AI better work out, or we have a problem." Facing ever-growing high-interest debt, negative-EBITDA AI labs and $200bn+ in warehoused GPUs, that's exactly what the AI industry has. www.wheresyoured.at/ai-had-bette...

wheresyoured.athttps://www.wheresyoured.at/ai-had-better-work-out/If you liked this piece, you should subscribe to my premium newsletter, and you can subscribe on the following links: $70 a year, $18 a quarter, or $7 a month. In return, you get a weekly premium…