Apple Will 'Watch Everything Burn' When the AI Bubble Bursts
# Summary
Ed Zitron argues that the AI industry operates on fundamentally broken economics, as Large Language Models consume tokens at unsustainable costs that companies cannot actually charge consumers—forcing them to hide massive losses behind cheap monthly subscriptions that users can exceed by hundreds or thousands of dollars. Companies like OpenAI have reported enormous losses despite high revenue, and enterprise customers who switched to transparent token-based billing (like Uber) quickly discovered the true costs are unjustifiable, creating a crisis across the AI industry. Apple, which is investing heavily in AI features, faces significant risk if this bubble bursts and the buildout costs prove impossible to recoup.
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