Summary
Fireship’s Code Report looks at what it calls the roughest three weeks in AI history and asks whether the AI bubble has popped. After a period of record optimism, markets have dropped sharply: Meta created a non-voting stock class to pay for GPUs, Microsoft offered a quarter of its employees money to leave, and CoreWeave is now worth about a third of its value at the start of the month.
The video explains the circular financing behind AI data centers. Nvidia invests in a neocloud, which borrows against GPUs it has not yet bought, buys Nvidia chips, and may rent them back to Nvidia. It works while chips rent for more than they depreciate, but CoreWeave, after borrowing $52 billion, is paying 15% interest, and Elon Musk predicts 200 or more neoclouds will fail as debt markets close.
It also covers Anthropic’s 330-page S-1 and its plan to raise $100 billion, including the risk factors it discloses, from sandbox escapes to a state-sponsored group using Claude Code in attacks. The video closes with a more optimistic view for developers, including subsidized tokens and a new open model from Kimi priced at half the cost of Opus.
📺 Source: Fireship · Published October 28, 2026
🏷️ Format: News Analysis
