AI's Circular Economy Built the Bubble—Enterprise Demand Is 2-3 Years Away
DavidLinthicum · x · 2026-10-01
Cloud/AI veteran David Linthicum argues the AI industry is propped up by circular spending: NVIDIA sells GPUs to cloud providers, clouds sell compute to AI labs, and model providers resell to enterprises and each other—value exchanged in a closed loop, not organic demand. Enterprises, endlessly courted at conferences, largely haven't done significant AI work: it's too expensive and they lack the data, skills, and governance. Meaningful enterprise adoption needs another 2-3 years to materialize, which doesn't match the current investment pace. His conclusion: a correction is coming, hopefully a deflation rather than a pop, and players should plan for reality now.
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