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AI Will Replace You? NO - Here's Why the Nvidia/OpenAI Bubble Pops 2026
We're in an AI bubble. Everyone feels it. The fakeness underlying the hype around Nvidia, OpenAI, and Silicon Valley AI startups is palpable. Here's how the money actually flows and why this whole thing collapses.
The Circular Funding Loop
OpenAI needs Nvidia GPUs to run ChatGPT. Nvidia needs massive data centers to house the GPUs. Microsoft and Oracle build and operate those data centers. Microsoft is also OpenAI's biggest investor. So Microsoft funds OpenAI, who buys from Nvidia, whose chips go into Microsoft's data centers, which OpenAI rents compute from. Money sloshing around in a closed loop, valuations inflating at every step.
The "Replace Workers" Narrative
ChatGPT is genuinely more capable than median IQ Americans at certain knowledge work tasks. No shame in that, just math. But the narrative that LLMs will wholesale replace humans is overhyped. They're useful tools. They're not general intelligence. The quantity-over-quality approach works for some jobs, not most. Yet the entire valuation premise depends on the "replace all knowledge workers" story being true.
What This Means for Regular People
Unaffordable housing. Unaffordable energy as data centers spike electricity costs. No privacy in computing since everything runs through centralized cloud infrastructure. Intellectual dependency as people outsource critical thinking to chatbots. The government is already setting up bailout infrastructure for when this pops, prioritizing OpenAI and Nvidia over American workers.
Why It Pops
Same pattern as crypto. Bitcoin had legitimate promise, interesting tech, real use cases. Then FTX happened. One big scam exposed, public sentiment snapped, market crashed. AI is following the same trajectory. Too many hucksters and grifters piling in. Someone major will get caught overpromising and underdelivering. Media turns, public turns, investors panic sell, musical chairs for the exits.
My prediction: this happens mid-2026. It will make 2008 look like a blip.
Get full access to Dr. Josh C. Simmons at blog.drjoshcsimmons.com/subscribe
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By Dr. Josh C. SimmonsWe're in an AI bubble. Everyone feels it. The fakeness underlying the hype around Nvidia, OpenAI, and Silicon Valley AI startups is palpable. Here's how the money actually flows and why this whole thing collapses.
The Circular Funding Loop
OpenAI needs Nvidia GPUs to run ChatGPT. Nvidia needs massive data centers to house the GPUs. Microsoft and Oracle build and operate those data centers. Microsoft is also OpenAI's biggest investor. So Microsoft funds OpenAI, who buys from Nvidia, whose chips go into Microsoft's data centers, which OpenAI rents compute from. Money sloshing around in a closed loop, valuations inflating at every step.
The "Replace Workers" Narrative
ChatGPT is genuinely more capable than median IQ Americans at certain knowledge work tasks. No shame in that, just math. But the narrative that LLMs will wholesale replace humans is overhyped. They're useful tools. They're not general intelligence. The quantity-over-quality approach works for some jobs, not most. Yet the entire valuation premise depends on the "replace all knowledge workers" story being true.
What This Means for Regular People
Unaffordable housing. Unaffordable energy as data centers spike electricity costs. No privacy in computing since everything runs through centralized cloud infrastructure. Intellectual dependency as people outsource critical thinking to chatbots. The government is already setting up bailout infrastructure for when this pops, prioritizing OpenAI and Nvidia over American workers.
Why It Pops
Same pattern as crypto. Bitcoin had legitimate promise, interesting tech, real use cases. Then FTX happened. One big scam exposed, public sentiment snapped, market crashed. AI is following the same trajectory. Too many hucksters and grifters piling in. Someone major will get caught overpromising and underdelivering. Media turns, public turns, investors panic sell, musical chairs for the exits.
My prediction: this happens mid-2026. It will make 2008 look like a blip.
Get full access to Dr. Josh C. Simmons at blog.drjoshcsimmons.com/subscribe