The hosts argue that a significant portion of AI revenue reported by Microsoft, Google, and Amazon is actually just spending from OpenAI and Anthropic, creating a circular system. They highlight how unrealized gains from AI startup stakes make earnings look better than they are, while Microsoft is uniquely penalized by accounting rules. The conversation turns to the fragility of this demand, noting that real-world adoption is minimal, with only 8% of Microsoft 365 users using Copilot. They warn that if the bubble bursts, these companies won't collapse but will lose their growth status and face lower valuations. The episode concludes with a look at the riskiest players, singling out Oracle as a potential casualty due to its heavy debt and flat revenue, while noting that some investors are starting to recognize the systemic risk.