The AI Trade is Dead, OpenAI and Anthropic undershot the moon, pressure private equity

For those who don't work in the tech industry, the hype for cutting edge models is already completely dead. We got a taste of what it was capable of with Fable, but it turns out it's mostly just good at making stuff that already exists like Minecraft and Tinder clones. It was kinda neat for the 2 weeks it was freely available on plans, but ultimately none of these businesses are willing to pay ludicris token prices just to use a slightly better model. Companies have already switched back to subscription models, they'd be stupid not to, it's free compute. Even if they were to remove subscriptions entirely, it wouldn't help as people can just switch to open source models instead. It's a no win situation for Anthropic and OpenAI.

This means that the only AI sector that was going for mass compute, LLMs, will definitely not be able to ever pay back all that compute they spent. That's 2.5 trillion down the drain.

This is where you come in 🏳‍🌈🐻's. Private equity, Softbank, Amazon, Microsoft have to hold this massive bag of debt they spent on these worthless models and they want you to buy them from them. Expect the market to trade sideways or slightly down until this crashes, they are trying to slowly offload shares without crashing the market. Their goal is to hold out until

Positions:

Late 2027 SNDK, NVDA, PLTR, TQQQ, and ORCL puts.

Other good options are NBIS, MU, and CRWV