Chamath: 70-80% of AI company revenue comes from other AI startups; Zitron's bubble math
SumitGup · x · 2026-10-16
Chamath estimates 70-80% of AI company revenue comes from other AI startups funded by VCs — not circular revenue, he argues, but a revenue-quality problem akin to the mid-2010s SaaS cycle. Ed Zitron amplifies it with his newsletter 'Annualized Enron Rate,' arguing AI startups raising billions to make millions make up 80% of OpenAI/Anthropic revenue while burning 2-6x their subscription cost in tokens monthly, and ARR figures obscure the reality.
Related event: Chamath Claims 70-80% of AI Company Revenue May Come From Other AI Firms(2 posts)→
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