Analyst Ed Zitron says Microsoft’s AI strategy looks like a scam, describing the company's financial realities as betraying the hype. Microsoft's share price has slid 22% in the past year as investors doubt its long-term AI strategy. Zitron notes that generative AI is incredibly costly to run, with unclear return on investment, and that many companies find it cheaper and more effective to use human labor. Companies that laid off engineers for AI later rehired them, and others have restricted token expenditure as returns remain elusive. Zitron highlighted that OpenAI burned $20.9 billion dollars in 2025, and that these companies' margins are getting worse, with costs increasing linearly with revenues.