Tech's Broken Economics Force a Reckoning With AI Hype
Source: Evan Shapiro: Media War & Peace
The venture-backed tech stack has exhausted its ability to monetize at scale. Cloud infrastructure, consumer apps, and ad networks all face margin compression. AI has become the last narrative escape hatch for investors seeking exponential returns. This structural desperation—not genuine capability breakthroughs—explains the messianic framing around large language models. The industry needs AI to justify another decade of capital accumulation. When fundamentals deteriorate, the rhetoric scales upward to match.