AI Boom Sparks Concerns Over Hyperscaler Revenue Concentration

UBS estimates that OpenAI and Anthropic will account for nearly half of Google Cloud's revenue next year, totaling over $124 billion. This prediction has sparked concern among some investors, with Ed Zitron, CEO of EZ Primary Research, warning that the AI boom is 'dangerously narrow'. According to Zitron, what appears to be broad demand for AI compute is actually circular financing concentrated in these two unprofitable private companies.

Zitron argues that OpenAI's $20.9 billion losses in 2025 and delayed IPO expose hyperscalers to a massive infrastructure demand gap of over $1.6 trillion annually. He claims that two customers cannot backfill this hole, especially when Anthropic and OpenAI themselves can't afford it.

Microsoft's Intelligent Cloud segment saw 69% of its growth from OpenAI alone in 2025, while AWS has exposure to these same two customers at 13% this year, rising to 18% next year. The Information reports that 89% of the largest AI companies' revenue comes from OpenAI and Anthropic.