LLMs slide on runaway capex and thin revenue for 5 straight days
The tape is clear
LLMs extended a five-day selloff, even as the NASDAQ was propped up by chipmakers.
But flat adoption rates and pre-execute provisioning efficiencies point to falling demand for AI infrastructure.
The past is clear
From the 1873 railroad crash to the 2000 dot-com bubble, when capex races ahead of adoption, narrative eventually gives way to arithmetic.
The data is clear – in the red
The narrative is clear
Enterprise adoption remains a challenge according to MIT
- Microsoft challenged
- Salesforce challenged
- Amazon challenged
The warning signs are no longer theoretical
- Adoption has stalled at all LLMs in December and for all of 2025
- LLMs have failed to report flat adoption rates on 10-Qs
- Scale can’t produce revenue commensurate with capex
- Menlo Ventures: ChatGPT only converts 5% from free to paid
- xAI’s Grok posts sexualized images of minors on X
- Unrealistic valuation: Anthropic’s $350B is based on $11B investment
- OpenAI considers advertising, fails to monetize world’s largest AI user base
- ChatGPT’s audience doesn’t pay, won’t appeal to advertisers
- WSJ’s James Mackintosh called the AI bubble
- Jim Cramer: The year of magical investing is over
- Derek Thompson: The numbers just don’t add up
- Token-based pricing is inaccurate
- Inference costs scale up with adoption, not down
- Rick Perry’s datacenter developer Fermi America lost 40% after losing a tenant
- Oracle is down 40%, losing $250B in market cap
- Do the math: Flat-rate pricing will never work
- Salesforce has retrenched, admits AI is not working
- AI-powered Alexa “killed my fish”: Tales from Amazon employee beta testers
- MIT: 95% of all AI-for-business implementations fail