In the grand theater of human ambition, where the stage is lit by the flickering glow of artificial intelligence, Binance founder Changpeng Zhao (CZ) has emerged as a prophet of doom, declaring that most AI companies shall perish, their dreams as fleeting as a summer breeze.
This pronouncement arrives amidst a frenzy of capital, as Anthropic flirts with a trillion-dollar valuation and OpenAI prepares its grand entrance into the public markets. Yet, in the words of CZ, this spectacle is but a masquerade, where the crowd is dense, and the survivors few.
The Inevitable Culling of the AI Herd
On the platform of X, CZ proclaimed with the gravity of a sage, “AI, like a mighty river, shall flow and grow without end. But the vessels that carry it? Most shall sink, crushed by the weight of their own numbers. Even those that endure shall face storms of price and the relentless march of new challengers.”
“AI will stay and grow exponentially. But most AI companies will go bust. There are just too many. Even survivors will see huge price fluctuations. There will be new survivor entrants too. Same as any other new industry, really,” CZ posted, his words echoing the inevitability of fate.
CZ, with the detachment of a philosopher, frames this as the natural order of nascent industries, where the flood of gold begets but a handful of enduring victors. His skepticism extends to the very tokens that fuel these AI agents, suggesting that their utility is as limited as a one-legged man in a race.
As the coffers of frontier labs overflow, Anthropic announced a $65 billion Series H round, its valuation swelling to $965 billion, a sum so vast it borders on the absurd. Yet, even as they report revenues of $47 billion, one cannot help but wonder: is this but a castle built on sand?
can a trillion-dollar valuation withstand the scrutiny of the balance sheet?
The Folly of Uber’s AI Odyssey
Amidst this frenzy, the tale of Uber serves as a cautionary jest. Its CEO, Dara Khosrowshahi, confessed to analysts that the company, in its zeal for AI, had burned through its 2026 budget in a mere four months. The CTO, with a candor that borders on comedy, questioned whether the tokens were but a costly illusion, offering little in the way of tangible returns.
This pattern, alas, is not unique. The National Bureau of Economic Research reveals that 90% of firms find no measurable benefit from AI, a statistic as damning as it is humorous. OpenAI, despite its grandeur, projects losses through 2028, its $1.4 trillion datacenter commitment a monument to hubris.
The hyperscalers, too, are not immune to this farce, with Anthropic and OpenAI underwriting more than half of the $2 trillion in cloud commitments. One cannot help but wonder: is this a sustainable model, or merely a grand illusion?
Whether CZ’s prophecy proves true remains to be seen. Anthropic’s first operating profit this quarter offers a glimmer of hope, yet the sector’s spending outpaces its earnings with the recklessness of a gambler. The true test shall come when OpenAI’s S-1 lays bare the reality of a trillion-dollar AI company. Until then, we are left to ponder: is this the dawn of a new era, or merely a comedy of errors?
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2026-05-29 12:10