“The AI boom isn’t a revolution — it’s a circuit eating its own tail.” -- YNOT
Once upon a time, ancient philosophers drew a circle — a serpent swallowing its own tail — and called it the Ouroboros. It meant eternity, self-renewal… and sometimes self-destruction. Fast-forward a few thousand years, and Silicon Valley has built its own Ouroboros — not from scales and flesh, but from silicon and debt.
NVIDIA sells chips to OpenAI. OpenAI buys those chips with money NVIDIA helped it raise. Investors cheer, valuations rise, and the same dollars go round and round, glowing brighter with every spin — like a neon snake mistaking its tail for profit.
If it keeps feeding on itself, it won’t just burn through its own body — it could set the whole financial forest on fire.
The Great AI Money Circle
If you’ve ever seen a snake eat its own tail, you’ve already got a rough idea of what’s happening in Silicon Valley right now. The tech world calls it “synergy.” I call it a financial feedback loop with a caffeine addiction.
NVIDIA sells chips to OpenAI. OpenAI uses NVIDIA chips to build models that supposedly make the world smarter. In gratitude, NVIDIA invests billions into OpenAI—so OpenAI can afford to buy more NVIDIA chips. It’s the tech version of an extension cord plugged into itself: lots of sparks, no power.
Meanwhile, the world’s investors stare at this glowing loop and say, “That must be perpetual profit.”
CoreWeave, Anthropic, Oracle, Google, and Amazon have all joined the merry-go-round. NVIDIA owns part of CoreWeave. CoreWeave rents NVIDIA chips to OpenAI. OpenAI buys billions more chips—often with money loaned by the very companies it’s “partnered” with.
Amazon and Google each shove billions into Anthropic so it will, conveniently, use their clouds and chips. It’s a love triangle powered by electricity and debt.
This isn’t competition. It’s coordination. Every deal makes the web thicker, more circular, and more fragile. It’s the kind of structure that looks stable—until you realize everyone’s collateral is the same dream. Don’t get me wrong, I am pro AI, I believe it humanities greatest invention, for better or worse. It is just the Voodoo economics I don’t like. “Voodoo economics” is when math takes a back seat to magic.
The Trillion-Dollar Mirage
Here’s the part that makes a banker sweat: McKinsey estimates $5.2 trillion in new spending just to keep the AI data centers humming through 2030. That’s more than the GDP of Japan.
OpenAI’s “Stargate” project alone plans for 23 gigawatts of data center power—roughly 23 nuclear plants’ worth of juice. You could light up 25 million American homes with that. Instead, we’re teaching large language models to rhyme “banana” with “Hannah.”
Electric grids can’t keep up. Some AI data farms are burning gas straight into the atmosphere just to stay online. So much for a “clean” future of digital intelligence.
The Coming Crunch
These companies are all borrowing against assets that melt faster than an ice cube in Death Valley. GPUs that cost $200,000 today might be obsolete next summer. The rental price of high-end AI chips has already dropped below cost.
It’s eerily familiar—railways in the 19th century, fiber-optic networks in the 2000s. Overbuilt. Underused. And when the demand never arrives, the bubble bursts. The debts remain.
If AI revenues don’t match the hype, the fallout won’t stop at Silicon Valley. It’ll hit the lenders, utilities, and pension funds now powering this digital arms race. A trillion-dollar overbuild could drag the global economy down like a black hole made of semiconductors.
Side Note: The Great Data Center Mirage
Here’s the part no one likes to say out loud: data centers age like milk, not wine. The ones built just five years ago are already obsolete — their power, cooling, and networking can’t handle the heat of modern AI workloads. That’s why there’s such a frantic building boom today: everyone’s racing to replace the servers they just finished paying off. But the cruel irony is that the new ones being poured into concrete this year will probably need to be gutted and rebuilt five years from now. The return on investment — like the GPUs humming inside — has the lifespan of a fruit fly. What used to be long-term infrastructure has turned into a treadmill made of gold-plated servers, and no one can afford to stop running.
The Modern Alchemy of Hope and Hype
Tech leaders tell us not to worry—that this time is different. They said the same about the metaverse, NFTs, and self-driving taxis. AI might truly change the world, but right now it looks more like a money-printing machine that’s jamming itself.
If it works, we get an industrial revolution.
If it doesn’t, we get the first Artificial Recession—built not by men, but by their models.
Epilogue: The Serpent’s Last Bite
Humanity once worshipped the sun for giving us light. Now we worship the silicon that steals it. The prophets of this new religion promise endless intelligence, but all I see is a glowing ouroboros — a trillion-dollar serpent made of fiber optics and investor optimism, devouring its own tail under the flicker of fluorescent light.
If it keeps feeding on itself, the glow will vanish, the current will die, and the circle will finally close — not in eternity, but in silence. That’s how bubbles end. Not with a bang of innovation, but with the quiet hum of servers running out of power.
AI is real the PROFITS aren't! - at least for most.
The New Moai –
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