BitMEX co-founder Arthur Hayes has stated that artificial intelligence model companies are operating unsustainably on government support, with larger bubbles eventually requiring larger bailouts that could benefit bitcoin.
Speaking on the Convergence podcast with Luke Martin on October 16, Hayes outlined four key arguments. He contended that AI companies "raise debt" and "raise equity" while benefiting from "an implicit government backstop from the US government," allowing them to continue spending without generating profits.
Hayes specifically named Anthropic, OpenAI, and SpaceX as companies backed by the government that "not one makes money." He argued that as the AI sector grows, so will the eventual bailout required, which he believes will drive bitcoin upward.
"Bitcoin is there to show us that we're wasting money," Hayes concluded.
Hayes made his comments during a volatile week for technology stocks. Chip stocks posted their longest losing streak since 2008, declining for eight consecutive days, while the Nasdaq 100 fell 2.5% on October 16. Bank of America analysts warned that the $1 trillion AI investment boom could follow a classic boom-and-bust cycle.
During the same period, The Financial Times reported that Anthropic offered Blackstone a yield above 10% to help finance a $60 billion AI chip deal. Reuters reported that some Anthropic investors were weighing a $1.5 trillion valuation for the company.
Hayes is not alone in connecting AI sector stress to cryptocurrency markets. BlackRock CEO Larry Fink raised recession concerns over potential AI data center shutdowns, while other analysts have argued bitcoin could benefit from various market outcomes.
Hayes also addressed cryptocurrency token launches, stating that retail investors who purchase at token generation events often see their investments decline substantially.
