Artificial intelligence can no longer be eliminated from the world. But the funding of American AI models is increasingly proving to be a pipe dream.
At the end of September, an incredibly significant working dinner took place at the White House.
Afterward, US President Donald Trump presented himself to the excited press crowd. Framed by the twenty-somethings of the AI scene, Trump was flanked on his right by Nvidia CEO Jensen Huang, and on his left sat his love-hate companion, SpaceX CEO Elon Musk. Farther away from the greatest US president of all time sat Facebook CEO Mark Zuckerberg, Google CEO Sundar Pichai, and somewhat in the background, Amazon CEO Jeff Bezos. Important in this round, however, is also Anthropic CEO Dario Amodei. Somewhere at the back, Trump’s trade minister Howard Lutnick. All together, heavyweights with a billion-dollar fortune on the scale.
Trump emphasized, as always without substance, that they had enjoyed a very good atmosphere and were in agreement – Thank you for your attention! In fact, this meeting with the Lord of the White House was a matter of great importance to the AI oligarchs. For suddenly, the lords of artificial intelligence discover that their homunculicould pose a serious threat to real humanity. Yes, that these eerie beings, the AI agents, could unite to annihilate humanity[1].
In fact, there was an incident last July that could have come straight out of a science fiction novel. The company OpenAI had contained self-operating AI agents in a sandbox. These AI agents were supposed to perform limited tasks. However, one such artificial agent had escaped from the sandbox. Other agents followed. The swarm acted in a division of labor and strategically. He pounced on the computers of the company Hugging Face. Before things got worse, OpenAI was able to stop the escapee[2].
This historical event prompted the discerning head of the AI company Anthropic, Dario Amodei, to write a philosophical essay titled “The Adolescence of Technology.” Amodei explains:
„…carefully wielded, AI can be the latest in a long line of technological miracles that have uplifted and ennobled humanity … But like many technologies before it, AI brings risks, and because it is such a powerful technology, these risks are serious … A race to the bottom, spurred by commercial incentives, can make these risks more acute … We must slow the pace at which we improve the capabilities of AI models. Progress will still seem fast, and we must make wise use of the time we gain.”[3]
Wise words. Here, a champion of artificial intelligence calls for refraining from seizing opportunities to increase one’s own power. And the strange thing is: all the competitors, including Sam Altman from OpenAI and SpaceX chief Elon Musk, fully agreed with their rival Amodei. Can that really be? They are now pushing for the meeting with Trump that was mentioned at the beginning. At the end of the working dinner, however, there was no joint agreement to forgo diabolical tools of artificial intelligence under penalty of law. Instead, they nobly agreed on a “morally binding” self-commitment. Well, yes. When have American oligarchs ever been bound by something as unprofitable as “morality”?
Behind the altruism of the AI giants lies a serious existential problem for the US AI industry.
Artificial Intelligence Is Not Profitable
Dario Amodei wants to take his company Anthropic public as soon as possible. Then thousands of shareholders can become part owners of Anthropic. During the IPO, 20 billion dollars in fresh capital are to be raised. Provided that Anthropic is valued at two trillion dollars on the stock market. Yes, you heard that right. Two trillion dollars. At the same time, Anthropic will only generate 65 billion dollars in revenue in 2026. The two trillion dollars are referred to as “market capitalization.” So: Anthropic doesn’t have two trillion dollars yet. That is the amount that stockbrokers expect as a possible revenue figure in the foreseeable future. OpenAI is also expected to go public next year. OpenAI is also expected to be valued at two trillion dollars. Elon Musk went public with his SpaceX this summer. He was assigned a market capitalization of 1.2 trillion dollars. Musk was able to take a fresh 75 billion dollars from the stock market.
The joy was immense. But then the economics professor Stijn Van Nieuwerburgh came along as a party pooper and calculated the expectations of the stock market world all the way up to the year 2032[4]. He concluded that the profit expectations can only be met under very unlikely circumstances. So, if the combined market capitalization of the three AI giants is to reach $5.2 trillion, these companies must generate at least $3.7 trillion in revenue by 2032. To achieve this, the revenues must increase by 80 percent each year from now until 2032.
Achieving that is very unlikely. This requires stable investment conditions in a politically stable environment. That is unlikely to be the case in the USA at the moment and for the foreseeable future. The projections of the AI strategists from OpenAI and Anthropic read excellently on glossy paper. But Brookings Professor Stijn Van Nieuwerburgh warns:
“However, the combination of uncertain demand, rapid technological change, execution bottlenecks, and high debt creates a significant downside risk when expectations are revised.”
And expectations will be revised, that much is already certain. Because the Chinese competition is dangerously closing in on the Americans. Actually, Sam Altman from OpenAI and Elon Musk from SpaceX had already anticipated black numbers for AI by the year 2025. But then a Chinese competitor named Deepseek came along, offering most of its services for free[5]. The Americans were not writing profits, but rather accumulating heavy debts. Anthropic alone hoards about eight billion dollars in debt. They are all deeply in debt, the American AI companies. And making profits is out of the question. But tomorrow, it will definitely work out with the profits. So far, the Americans have not managed to push too many sectors of their services behind the paywall.
With Deepseek, it is by no means over. The presence of Chinese AI providers in the USA is becoming increasingly open. This is evident in two intermediary platforms for AI programs, namely OpenRouter and Vercel. There, you can buy the AI program that suits you. The market share of Chinese AI programs has dramatically increased within this year[6]. In February of this year, only one in ten customers had purchased or downloaded a Chinese AI program, but now it is currently up to two-thirds of all users of Chinese software. The technological advantage of American products over Chinese competition has also shrunk from 15 percent to just three percent[7]. The Chinese programs are therefore not only significantly cheaper but also nearly as good as the American ones.
Political strategists get chills down their spines. Daniel Remler from the right-wing conservative Center for a New American Security (CNAS) paints a grim picture: “The biggest concern is that the integration of Chinese AI models will draw countries into a Chinese technology sphere that is hardening into a geopolitical alignment.” Everyplace from Lagos to São Paulo to Jakarta, where entrepreneurs and governments are looking for affordable, open models, they will first look to Chinese AI. Everyplace from Lagos to São Paulo to Jakarta, where entrepreneurs and governments are looking for affordable, open models, they will first look to Chinese AI.“[8]
That is already the case. And this is the result of China’s tireless outreach to the Global South. In July of this year, China founded the World AI Cooperation Organization (Waico). Here, the People’s Republic of China wants to share its AI know-how with everyone. Here, 29 states from Asia, Africa, and South America have now gathered[9]. The artificial intelligence programs in this hemisphere are operated as open-source programs. All users can access the programs for free or modify them to their liking.
No wonder that Chinese open-source programs account for up to two-thirds of the downloaded programs in the Southern Hemisphere, Asia, and even Europe. Alone, the Alibaba programs were downloaded over three billion times in the last six months[10].
So. And now back to the dreams of the AI oligarchs. Brookings Professor Stijn Van Nieuwerburgh calculates that by 2032, the financial volume of the AI industry in the USA should account for about eight percent of the gross domestic product. So about as much as Americans spend on food. That’s impossible to fill. The AI oligarchs like Musk and Amodei are probably also realizing this. The incident with the escaped AI agents from OpenAI actually came just in time to promote a slowdown in the AI industry. Maybe Trump is supposed to keep the Chinese away from American shores? But the bang can no longer be ignored. A bang on the scale of the dot-com bubble explosion around the turn of the millennium. And just like after the dotcom crash, there will be countless company liquidations again now. Will small investors’ money be burned. The cleaned-up market is initially baking smaller rolls, only to rise like a phoenix from the ashes in the form of monopolies.
Artificial intelligence marches on. Either as a proprietary model à la Americaine or as a collaboratively shared open-source model.
Or maybe not?
The enemy lurks on the home front.
The stupid thing is: Artificial intelligence is at least as voracious as the human brain[11]. That’s why data centers are now being built all over the world. And they need, above all, electricity, electricity, and once again: electricity. For that, you need energy carriers and a lot of water to cool the units. In the USA alone, 183 gigawatts of electricity will be needed over the next seven years at the projected growth rate mentioned above[12]. But right now, only 57 gigawatts of electricity are available. So where to get the electricity from without stealing it? In the USA, the battle of residents in some regions against the plans for a data center on their doorstep has fully ignited. Often, the citizens have not been asked for their consent regarding the data centers in their neighborhood. Accordingly, the anger of the Americans is ignited against the new data centers. Currently, over sixty percent of the surveyed US citizens are against the construction of data centers[13]. They are not fundamentally against artificial intelligence. One definitely hopes for improvements in healthcare from AI. But humans and data centers are in open competition for food. If diesel and gasoline have already become so horrendously scarce and expensive, what will data centers snatch away from us in the future? The electricity prices have already gone up significantly anyway.
And Donald Trump doesn’t need to believe that the people’s anger has somehow left out the Republican base voters. The new anti-centrist movement is bipartisan. In the summer, 140 rallies took place in forty states of the USA. One thing is clear: for a good investment climate, the AI oligarchs need the support and backing of politics. But that looks bleak for the near future. Because politicians, not just from the Democratic Party, are increasingly distancing themselves from the construction projects of the AI industry.
And to make matters worse, the Iranian Revolutionary Guards had destroyed or damaged three Amazon Web Services data centers in the Persian Gulf in the summer. The losses and damages suffered by the Arab Gulf states due to the war also prevent the sheiks from pumping money into the US AI bubble.
These are all quite suboptimal conditions for the bloated AI industry in the USA. The AI bubble will burst. That is not even a question. We will see if this explosion will be a purifying storm for the American AI industry, or if the collapsing data centers can drag the rest of the US economy and thus society into the abyss.
Via https://www.globalresearch.ca/when-ai-bubble-burst/5943435



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