Comment by hparadiz
4 hours ago
He's a college drop out with no experience in programming or technology.
He has zero numbers and is completely making stuff up to a gullible audience.
The real numbers show high demand for all these services to the point where the companies are rate limiting the services because demand is TOO high.
I thought Ed Zitrons argument was just corroborated by Nikkei last Friday with the new report that 1.6 Trillion in SPVs accounts for off-books debt, on top of the $1.4 Trillion of on-books debt that's in these AI companies?
The main argument of Ed Zitron is just that. Huge huge amounts of debt that's due "soonish". Every SPV is different but we are fast approaching the point where this all starts to become real.
Now I dunno why Ed Zitron feels the need to write 10,000++++ word articles that only says "more leverage than people expect", but that's really the crux of things.
If that's all Zitron wrote, I don't think he'd be as polarizing (or as dunked on). But he goes way, way past that.
It all comes down to the fact that Zitron thinks these AI companies are over levered and have significant chances of collapsing industry wide.
Yeah he uses more words to say it and bad arguments as part of it. But so did Galileo's "The tides prove that the Earth is moving around the sun" argument. Some arguments are bad, even if the overall point was correct.
I think given the new Nikkei report from last week, we are seeing more and more of Ed Zitrons arguments bear fruit, after years (literally) of him calling wolf.
It all is crazy talk until real numbers come out and prove him correct. But it seems to take a long time for those numbers to materialize.
I don't understand how that affects what he has written here? How does his data not make sense?
>zero numbers
You’re thinking of a different person.
Most recent free article: https://wheresyoured.at/the-subprime-data-center-crisis/
Number after number, e.g.:
Ed Zitron is basically two things, numbers and snark. You can disagree with the snark but to say he has “zero numbers” is ridiculous.
Additionally, as another commenter has pointed out, his thoughts and criticisms are being echoed by people who actually have the money.
> He's a college drop out with no experience in programming or technology.
I mean Zuckerberg is a drop out.
zitron has been around since before flash was dead, more over hes worked in PR so like anyone with heavy involvement with c-suite, sales and journalism, you get a good nose for bullshit.
That said, do I agree with his assertions? no not entirely. But. I suspect its a bit of an audience capture thing. He makes wild statements, then goes on a flight of fancy to back them up. I appreciate that, but it also lets me decide that he's going down a path that I feel is not backed up by his data.