Hyperscalers inflate AI demand by funding OpenAI and Anthropic, analyst says
Updated
Updated · wheresyoured.at · May 4
Hyperscalers inflate AI demand by funding OpenAI and Anthropic, analyst says
13 articles · Updated · wheresyoured.at · May 4
Ed says Google, Amazon and Microsoft have spent $803bn in AI capex, with $78bn invested in OpenAI and Anthropic and most capacity built for those two firms.
He argues OpenAI and Anthropic account for at least 85% of AI compute spend, while broader market demand outside hyperscalers and a few partners is under $1bn.
The commentary says data-centre shortages reflect slow construction, power and permitting limits rather than customer demand, warning Big Tech needs trillions in new AI revenue to justify current buildouts.
Is the current AI infrastructure boom a genuine response to market demand, or are tech giants fueling an unsustainable bubble with circular financing?
How will escalating energy and water demands from AI data centers reshape local communities and the environment over the next five years?