Some time ago I warned about the unsustainable overinvestment in AI data centers. Each of the AI corporations is dependent on commitments from other AI corporations. One was dependent on a purchase dependent on the purchaser securing funding depending on the funding source’s acquisitions or service sales, and so on. It is a circle that can break at any point. Now Bloomberg reports “The sudden plunge in demand for a Nvidia-backed data center company’s initial public offering is revealing fresh cracks in the AI funding boom.”
Moreover, AI is socially and economically destructive as it makes human labor valueless instead of elevating it to higher productivity as the mechanical revolution did. Trillions of dollars in investment capital are being pumped into making human labor valueless. That people invest in such destructive enterprises demonstrates the rise of a new stupidity previously unknown in human history.
Read Full Article: https://www.lewrockwell.com/2026/10/paul-craig-roberts/it-is-past-time-to-write-off-the-digital-revolution-as-a-huge-mistake/
