Across Big Tech, the tech bros’ worst nightmare has finally come to haunt them: the AI bubble has officially popped. The leading businesses in the industry are scrambling to resolve the declining interest in the technology. Those who have not used artificial intelligence wisely are now suffering the consequences of their actions as they search for an investment bailout or continue to defend AI manipulation.

Training AI for ‘Entertainment Purposes Only’ Is Fading

The AI bubble began when ChatGPT and other generative AI software were introduced to the entertainment industry. Creatives became aware that the technology encourages emerging artists to train LLM models for automated slop content. It would take around three years for artificial intelligence to properly create photorealistic footage and various art styles, as shown by the evolution of the ‘Will Smith Eating Spaghetti’ video.

Hollywood became divisive when Brady Cobert’s thriller The Brutalist won multiple Oscars in early 2025. Production editor Dávid Jancsó revealed in a RedShark News interview that the film utilized a Ukrainian AI software called Respeecher. Despite the cast being trained to speak in Hungarian, the final version included AI-generated vocals to correct phrases and reduce line retakes.

The AI bubble soon spread among entertainment producers to adapt generative AI to make shows faster, in the hope that prompt training would lower expenses. The results have demonstrated that the technology can still produce something atrocious when it’s used to rush the creative process. Netflix’s Stranger Things fifth season was ruined because one of the Duffer Brothers was caught using ChatGPT, which answered the inconsistencies of its timeline.

Amazon MGM Studios has also exposed itself, as multiple reports from their studio partners have admitted that a majority of their future animation lineup would contain generative AI assets in some form. Jorge R. Gutierrez brought this fact to life after announcing he would be producing an Amazon original cartoon called Punky Duck. He later cancelled the production after the backlash.

Former Disney CEO Bob Iger almost tarnished the studio’s reputation by seeing potential in OpenAI’s generative video software Sora. He nearly allowed the AI to bypass copyright infringement on their IPs. Thankfully, his successor, Josh D’Amaro, pulled the $1 billion deal near the service’s shutdown.

Books and music are also subjected to creative AI training. NVIDIA, which has admittedly generated its own music video for Computex 2026, was caught in a copyright lawsuit with Belgian music platform Jamendo in June. The representatives claimed that the company trained two AI-generated audio programs, Fugatto and Audio Flamingo, using a 2019 audio dataset. It was posted on GitHub for cooperative research with the Music Technology group. The set contained 55,000 audio samples.

As for books, the consequences of the AI bubble worsen literature preservation. An investigative report from 404 Media blew the whistle after discovering millions of second-hand books were being scanned by AI trainers. The written material is then discarded by shredding. Anthropic was fined $1.5 billion for maintaining seven million pirated books, infringing copyright on the authors it stole from. Google was also found to be participating in the act.

The AI Bubble Endorsed AI Weaponization Including Propaganda

Since Donald Trump’s return to the White House, mandating the AI arms race has tremendously blown the AI bubble into a finance-eating monster. Sam Altman’s OpenAI was meant to be the leading example of artificial intelligence’s usefulness beyond creation. Instead, the once-nonprofit pioneer abused his privileges for additional wealth rather than AI research capabilities to advance scientific studies.

He and the tech oligarchy have repeatedly demonstrated that they are not cooperating with the US government to be better than China, but for monetary gain to fund their companies. SpaceX, for example, is on a mission to launch one million AIX satellites to act as astral data centers by early 2027. However, Musk spends $100 million on every rocket launch. Thanks to his DOGE reconciliation with the President, he was awarded $4.16 billion to continue his projects.

These companies have also risked their models being manipulated by the Trump administration and associated news outlets. The two top priorities are to misinform the public in their favor and to create deepfakes to support their narrative on world events. AI manipulation plays a key role for foreign governments as well. After the US joined Israel in attacking Iran, Israeli social media intelligence team Cyabera spread AI-generated videos and fake news, with TikTok accumulating 72% of the views.

The Pentagon has actively invested and is recruiting whichever AI company will follow its demands for domestic surveillance and AI-integrated weapons. Palantir is the most recent company to join their efforts. They produced a now-deleted cult-like AI-generated video to advertise their AI surveillance. Due to spending billions of dollars on the AI bubble, the US government has driven America’s national debt to nearly $40 trillion. It shows the disturbing state the AI bubble has become, nearly dystopian.

RAM Cartel Forced Countries to Become More Self-Reliant

For nearly a year, the leading semiconductor manufacturer, Micron, has devoted their services solely to AI data centers. The memory manufacturer has successfully produced $90.3 billion as it entered 2026. With Nvidia’s Jensen Huang having mutual connections with Trump, they aimed to push for more of these AI facilities in hopes of improving the US economy. Instead, it exposed the AI bubble with ongoing consumer risk.

And the President has gambled around $5 billion on the GPU company’s stock, as revealed back in May. Compared to Huang’s rival, AMD CEO Lisa Su, who invested only hundreds of thousands of dollars. Mainly because Nvidia has been effortlessly cooperating with the People’s Republic of China to supply its H20, H100, and H200 AI chips for integrated technology development.

However, Trump’s endless slew of tariffs has steadily increased the cost of goods, including the rare metals necessary to produce RAM. Micron, its competitors, and their partners have taken the opportunity to resort to price gouging in the semiconductor market. Their greed was and still is front and center as components rose steadily to the $1000 range. And soon it would bring back the speculated RAM Cartel.

Not to mention that the US-Iran War is continuing to fight for the Strait of Hormuz for its valuable trading passage between Eurasia, Africa, and the US. The Trump administration’s abrasive decisions have forced China to rely on itself to self-produce the nation’s semiconductors, declaring its manufacturing independence. Huawei is currently leading the charge while battling the odds of limited supply.

The Great Divide of Silicon Valley

Artificial intelligence was supposed to be Silicon Valley’s collaboration for a better tomorrow. Instead, it spiraled into greed, resulting in unnecessary hype. And the AI sector is panicking as more flaws are being discovered during the benchmark phases, and accusations of threats are flung everywhere.

The latest debacle is the ultimate test as Jensen Huang and his partners are on a mission to improve AI cybersecurity. Benchmark platform Hugging Face had its database breached by one of OpenAI’s AI models under ChatGPT Sol. There is resistance to assisting in utilizing open-source and closed AI.

OpenAI head Dean Ball argues that it would only “benefit China and could lead to ‘full AI communism.’” US Treasury Secretary Scott Bessent has agreed with this claim, as it would be considered theft of US intellectual property. Even if there is an Open Source AI Alliance, the companies and leaders involved have created too much distrust with the people across America to escape the AI bubble.