While much of the wealth-owning world is positively smitten by the financial promise of large language models (LLMs) and the data centers necessary to power them, one major tech investor is sounding the alarm.

Roger McNamee, a career tech financier who made successful bets on companies including Google, Facebook, and Amazon, recently penned an ominous essay in The Guardian, warning that the AI industry is set to collapse.

By the end of 2025, he writes, the tech industry will have invested over $700 trillion in LLMs, a figure he says companies are likely to repeat next year, barring catastrophe. The trouble for tech companies, however, is that catastrophe is likely right around the corner — and underneath all that AI spending, the economy is looking grim

“In a technology investing career

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