Tech CEOs are hyping AI while a Bloomberg analysis warns the spending can never pay off — a bad sign for investors chasing the AI trade.

• Musk claims SpaceX will be worth more than the rest of Earth, and Zuckerberg is now touting Meta's own AI models.
• Companies are spending huge sums on data centers and chips, and everyone is rushing out new chatbots at cut-rate or free prices.
• To justify $5 trillion in planned AI spending, the industry would need to double its revenue every year for five years — something that has never happened in any sector.
• The financing is circular and strange: Anthropic is paying rival SpaceX to rent its data center, while SpaceX burns cash.
• Rising energy costs from the Iran war and shaky China trade ties are adding pressure to an already stretched industry.

Outlook: The spending and hype keep climbing, but the math points to poor returns and a growing risk the AI bubble pops.