Premium: Mythbusters - AI Edition

Source: Where’s Your Ed At Date: 2025-12-15 URL: https://www.wheresyoured.at/ai-mythbusters/

Summary

Ed documents that AI industry demand metrics are being manufactured: NVIDIA is buying massive cloud compute capacity (billions) while simultaneously claiming compute is “sold out,” suggesting artificial demand creation. Oracle’s $68B in new quarterly commitments may include circular deals where hardware companies purchase their own excess capacity. Tech and financial media amplifies these narratives without scrutiny. Core claim: the AI era is “a deceptive epoch” where executives make unverified claims, expensive infrastructure gets deployed for imaginary use cases, and skeptics face more pushback than promoters.

Implications

This is premium research directly on the AI financial sustainability thread. The artificial demand creation mechanism — hyperscalers buying from each other to produce “sold out” optics — is the supply-chain equivalent of revenue round-tripping. If compute demand is partially synthetic, the capital expenditure projections underpinning AI valuations are built on a circular foundation. Watch NVIDIA’s actual end-customer concentration and Oracle’s true third-party revenue as the real demand signals beneath the headline numbers.