A blunt attack on the AI industry says the whole boom is built on hype and huge losses, which is bad news for investors betting on AI infrastructure spending.

• The big AI companies are losing enormous amounts of money, with OpenAI reported to have lost about $21 billion last year and no clear path to profit.
• The claim that AI is driving big economic growth doesn't hold up, and there's no hard data showing it is wiping out jobs yet.
• The "we must beat China" argument is called a scare story used to justify trillions in spending on chips and data centers.
• Meta and other giants keep promising to spend aggressively on infrastructure to meet demand that may not be real.
• The core charge: the technology has been sold as magic when it's far more limited, and the public was never asked whether it wanted it.

Outlook: If the losses keep piling up without profits, pressure will build on the companies pouring money into AI buildouts.