1/04/2026

American multi trillion AI bubble sure to burst. No sign of revenue to justify the outrageous CAPEX

As in all matters, Trump is probably again using his infamous Art of the Deal', creating a tsunami over AI and data centers that was, and is, supposed to scare China out of the competition. There is a furious circle of investing by all the big USA technology giants into each other, now ongoing, to keep the scam going. That was always the first big overwhelming step trying to clear the deck.

Next step will be hyping up the AI scam that many are now saying, including Eli the Computer Guy. This is the second step of Trump's 'Art of the Deal' to make China shiver in its pants. Perhaps Trump has forgotten already that China holds the cards in cheap energy, rare earth supplies, has cornered all the essential raw materials around the world. Xi will be laughing and rubbing his hands in glee and urging Trump to 'dig baby dig' a bigger hole to swallow up all the money invested into a big black hole.

As the AI scam unravel, which is coming soon, lots of firefighting will ensue, but any admission of defeat is not going to happen. The spin will always be that the USA is coping very well with the rare earth and energy sector shortages, although those outside Washington would choose to differ. Not necessary to hold our breath regarding what the narrative will be but suffice to say it will be painted as rosy as always.

The final step, which is to come later, just before the big AI collapse, will be a declaration of a big win, another 'mission accomplished' moment. Sit tight and wait for it as it is sure to come.


Anonymous

1 comment:

Anonymous said...

With China trotting out open-source AI platforms, USA AI is dealt a death sentence as massive investments are not going to enjoy the revenue that they touted will be extracted from adopters. The writing is on the wall, and the collapse is imminent. It is just a case of all hands to the deck to save the scam, with cross-investing frenzy now happening among USA AI titans sector wide.

As I said earlier, China is setting a trap in AI and the USA is falling into it. It is the same as the USA setting a military spending trap for the Soviet Union during the Cold War period to try to keep up, which it could not. Then the USA was filthy rich, while the Soviet Union was still far behind in economic power.