Fearful Tech Leaders Travel With Armed Guards As AI Rises and AI Bubbles Rise

by Brian Shilhavy
News about health

Today was another day in Tech stocks, sparking AI Bubble doomsday scenarios that are the most talked about on the Corporate Financial news channels.

Barbara Kollmeyer, writing for Market controlcovered an opinion piece written by analyst Ed Zitron, who argued that an AI bubble is coming that will affect the entire stock market.

The AI bubble is coming, says this critic on the decline of tech stocks and the entire market

Ed Zitron sees recession driven by losing subscriptions and desperate need for cash

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The explosion results from the giant chip Taiwan Semiconductor Manufacturing Co. or TSMC, seems to do little for sentiment on Thursday.

Concerns about whether spending on artificial intelligence will pay off have dampened concerns for some stocks recently. Our daily challenge from Ed Zitron, author of The Disgusting Guide to the AI Bubble, doesn’t help much.

In a 15,000-word Substack post on Wednesday, Zitron, the founder of a tech-focused public relations firm, argues that the question is not if OpenAI will fail, but when.

“Its failure will be a watershed moment – the Lehman Brothers AI bubble and an event that will mark the end of one era, the beginning of another, and shake those affected by this psychosis.“, he writes.

A critic of artificial intelligence, Zitron sees a “culture” around what he sees as an AI bubble that is being kept alive by the existence of OpenAI.

Back in early 2023, when Zitron said he began researching large language models, he called generative AI “the latest gold rush in technology.” He predicted two years ago that OpenAI’s Sora video generator wouldn’t work – and it was canned in March.

His Substack posts attack OpenAI’s business model and planby the end of 2030, more than 852 billion dollars will be burned,” along with $50 billion or more in computing costs this year. The latter, he said, “more than 50% of all global computing costs.”

When OpenAI and Anthropic raised $300 billion in the past few years, their infrastructure costs were largely financed by hyperscalers, creating the illusion that more companies like OpenAI are eating computers, he wrote.

He notes that Oracle is particularly at risk from the potential collapse of OpenAI because it could be stuck with it.billions in wasted capital and endless loans and rents.”

Zitron predicts that OpenAI’s breakout will be just after “AI data center debt and venture capital funding is almost completely gone“because OpenAI needs money.

“Based on my own report on its audited finances from 2024 and 2025, OpenAI should at least triple its funding over the next decade.“, he says.

Zitron says the decline will be due to loss-making subscriptions, weak advertising revenue and higher costs for customers. This curbs demand for computing, ends ChatGPT’s freebies, and makes investors wary of any AI startup, not to mention data center-related debt foreclosures.

Zitron also doesn’t think Anthropic is safe because it burns billions in training models, generates too many Claude iterations, and lacks focus.

OpenAI’s collapse into “violent, punitive effect on the entire stock market“, he says.

Scales, he says, scare him.”so much so that I almost hope I’m wrong.”

Full article.

In Wall Street Journal today the article “Exceptional” under the title The return of AI has tech leaders scared for their lives, which was also published by many other mass media.

Since it is behind a paywall, here is an article published about it Futurism.

Scary tech workers travel with armed guards as AI continues to grow

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Public backlash against AI escalates into attempts at physical violence in the real world. Production managers fear for their lives.

The Wall Street Journal reports that leading AI companies and their top executives are beefing up security as anti-AI sentiment escalates in threats and attempts at violence against people and businesses that create advanced AI models. Some leaders even travel with armed guards, while others try to maintain a low public profile.

“Tech leaders, a few years ago, certainly didn’t have security,” Dakota Dominguez, an executive at Silicon Valley security firm JPT Security, told the WSJ.

“Many tech companies are now building it into their budgets.”

Earlier this year, the AI industry was rocked when a 20-year-old anti-AI activist named Daniel Moreno-Gama, armed with a handgun and a Molotov cocktail, unsuccessfully attempted to bomb the home of OpenAI CEO Sam Altman. No one was hurt, but the high-profile incident followed a series of threats of violence and at least one shutdown of OpenAI.

OpenAI is not alone. According to the WSJ , around the time Altman’s home was targeted, OpenAI competitor Anthropic had a close call when a man entered its office behind an employee carrying an envelope with the executive’s name on it. The man reportedly told the guard that “the executive is going to be killed.” The man was stopped before anyone was hurt.

All in all, it’s easy to see why tech leaders are budgeting for security.

Teodora Scarato, director Wireless and EMF softwareinterview in Redacted about the health risks that these huge mega data centers cause to American society.