Ed Zitron warns of an impending crisis in the AI sector, likening it to the Lehman Brothers collapse, which could adversely impact tech stocks and the broader market. He points to unsustainable subscription models and a growing demand for cash as contributing factors to this potential downfall. Despite positive results from Taiwan Semiconductor Manufacturing Co. (TSMC), concerns over the profitability of AI investments dampen market sentiment.

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Need to Know

The Lehman Bros. moment of the AI bubble is coming, says this critic warning of fallout for tech stocks and the entire market

Ed Zitron sees a downfall driven by loss-making subscriptions and an insatiable need for cash

Updated July 16, 2026, 9:38 a.m. ET

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(6 min)

In Sam we trust? OpenAI could be approaching a Lehman moment, argues artificial-intelligence skeptic Ed Zitron.Photo: Jason Redmond/Agence France-Presse/Getty Images

Blowout results from chip giant Taiwan Semiconductor Manufacturing Co., or TSMC, seem to be doing little for sentiment on Thursday.

Worries about whether spending on artificial intelligence will pay off have been a downer for some stocks lately. Our call of the day from Ed Zitron, author of “The Hater’s Guide to the AI Bubble,” won’t help much.

About the Author

Barbara Kollmeyer

Barbara Kollmeyer is based in Madrid, where she leads MarketWatch's premarket coverage of financial markets and writes the Need to Know column. She has worked in London and Los Angeles for MarketWatch previously. Follow her on Twitter @bkollmeyer.

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