Gary Marcus
@GaryMarcus
Why things will eventually fall apart:
1. Everybody, even Google, seems to be treating AI as if it were some kind of winner take all competition like web search was, in which Google taking over 95%
2. But everybody is building essentially the same technical solution with essentially the same data, so there is no moat.
3. If there is no moat, nobody is going to take 90% of the market.
4. With no clear winners, nobody can charge monopoly prices; instead, you get price wars and commodity pricing.
5. Which means everybody will wind up overpaying compared to the modest profits they will be able to make in an intensely competitive regime.
Am I missing something?
Thanks everyone for reading! Longer version some additional points on crowd psychology and links to a pair of great new podcasts with the legendary investors @realsteveeisman and @gnoble79 and converging words from @BradDeLong here: https://t.co/IfuO9moBmY
— Gary Marcus (@GaryMarcus) June 2, 2026
DALIO SAYS AI BUBBLE WILL BURST EVENTUALLY
— *Walter Bloomberg (@DeItaone) June 3, 2026
Let's get this straight, AI ROI is NOT real, but the orders to build the AI infrastructure IS real. So you buy the "picks and shovels" companies building AI, but not the companies using AI.
We were told the exact same thing back in Y2K.
And for a while it was true.
But when… pic.twitter.com/vp7n8BBduq
— Mac10 (@SuburbanDrone) June 2, 2026
WATCH: @edzitron absolutely destroy the AI narrative by explaining these AI companies have no way to be profitable.
(My personal theory is Elon Musk is rushing to take SpaceX public because he plans merge with Dario's Anthropic as a way to destroy Sam Altman) https://t.co/Fn7XNy9WeJ pic.twitter.com/WTeoRQI0Ig
— Financelot (@FinanceLancelot) June 3, 2026
Meta is about to spend $150 billion on capital expenditures in a single year.
To put that in perspective:
– More than the combined annual revenue of Coca-Cola, Pepsi, and Nestle
– Larger than Meta's own total revenue in 2017
– Roughly 10x what Meta spent on capex just five years… pic.twitter.com/6GpXNnebQH— Thierry from arvy 🇨🇭 (@ThierryBorgeat) June 2, 2026
Google is raising $80 billion of equity a week before SpaceX is trying to raise $75 billion a few months before Anthropic and OpenAI are trying to raise $100 billion from investors and you’re laughing???
This is a cataclysmic exit liquidity avalanche pic.twitter.com/0OqXgwDUkA
— litquidity (@litcapital) June 2, 2026
🚨 Do bull markets die like this?
70-100% above the 200-day moving average. Vertical price action. Record volume on the way up.
Three out of three climax run signatures.
William O'Neil studied 130 years of stock charts to find this exact pattern. He called it the most reliable… https://t.co/P6c77m0Oed
— Thierry from arvy 🇨🇭 (@ThierryBorgeat) June 2, 2026
Everyone overpays for scraps in this crowded fight.