AI bubble risks grow as investors question Microsoft's long-term plan

Tech critic Ed Zitron says generative AI has huge operating costs but unclear returns. Many companies found human labor cheaper and more efficient after trying AI, so they started limiting token spending.

Zitron cited OpenAI's finances: it burned $20.9 billion in 2025, with costs rising almost as fast as revenue and no sign of profit improvement. Microsoft's stock fell 22% over the past year, making investors doubt its long-term AI plan.

Zitron noted Microsoft's Copilot has less than 10% market penetration, far behind Claude, Gemini, and ChatGPT. Also, many of Microsoft's announced data center projects are still unfinished, adding to market worries.