Billions continue to pour into artificial intelligence after Microsoft and Amazon reaffirmed massive AI infrastructure spending plans alongside their latest earnings reports. Ed Zitron, CEO of EZPR and founder of EZ Primary Research, argues that soaring AI capital expenditure masks a risky dependence on a small group of cash-burning AI companies that rely on a constant stream of new funding to stay afloat. Zitron argues investors have misunderstood where Big Tech's AI spending is actually going, stating, "Everyone is buying into these stocks because they believe all of that CapEx is going towards diverse and spread out AI demand, when in fact, what it's actually doing is helping create infrastructure for two unprofitable, unsustainable companies." He pointed to estimates he attributed to UBS and Barclays, claiming that a growing share of future cloud revenue at Google Cloud and Amazon Web Services will come from OpenAI and Anthropic. According to Zitron, this amounts to a "circular" AI economy instead of a diversified AI industry, with hyperscalers becoming increasingly dependent on two cash-burning AI companies. He warns that hyperscalers are spending hundreds of billions on AI before it is clear whether the eventual returns will justify the cost, and that Wall Street is increasingly demanding evidence that AI investments are generating revenue and profits.