Why Silicon Valley Can’t Afford Its Own Revolution Follow the money. The central narrative behind the generative AI boom — the psychological reassurance that sets this moment apart from the dot-com bubble of the 2000s — has long been the “Adults in the Room” theory. We’re told this time is different because the companies driving the revolution aren’t flimsy startups spending venture capital on niche delivery apps. Instead, they’re tech titans: Nvidia, Google, Microsoft, Meta, and Amazon — the so-called “Big Tech” giants. And even the remaining independent players, like OpenAI and Anthropic, are effectively shielded by their deep ties to these corporate powerhouses, through partnerships, investments, or acquisition deals. These companies are not just corporations; they are de facto sovereigns, operating with balance sheets so vast — or so they claim — that they can fund the entire AI revolution from their war chests, as if it were a minor line item. The belief has taken hold that their financial strength is infinite, a guarantee that the AI buildout will proceed without interruption, regardless of whether it delivers on its promises. Even if there’s excessive spending on AI infrastructure, even if productivity gains fall short of projections, even if the technology fails to live up to its hype — the argument goes, it doesn’t matter. Because the revenue stream funding it isn’t dependent on AI itself. It comes from existing, proven businesses: cloud computing, advertising, enterprise software, and digital infrastructure. AI is just an add-on, a high-stakes experiment backed by profits from the real engine of the business. But this narrative is beginning to crack. The reality is that the very companies now leading the AI charge are themselves under pressure. Their cloud divisions, once the golden goose, are seeing slowing growth. Their advertising models are being disrupted by new platforms and privacy regulations. And the cost of building AI infrastructure — from chips to data centers to talent — is escalating at a pace that outstrips even the most optimistic revenue forecasts. What’s more, the “Adults in the Room” are not immune to the same market forces that once brought down the dot-coms. The same venture capital that once flowed freely into startups is now drying up. The same public markets that once rewarded bold bets on the future are now demanding real returns, not just promises of superintelligence. In short, Silicon Valley may have built a revolution on the back of a financial illusion. The idea that Big Tech can afford to fund AI indefinitely, without consequence, is no longer sustainable. The money isn’t bottomless. And when the bill comes due, the question won’t be whether AI will deliver — it will be whether the industry can afford to keep building it at all.