David Woo's AI Bear Case For AI, Mythos & Markets' Middle East Disconnect

David Wu, founder of David Wu Unbound and author of *Merry-Go-Round Broke Down*, presents a contrarian bear case for AI centered on a paradox: the technology has become so powerful—especially with the release of Anthropic’s Mythos—that it may never be widely accessible. While markets are soaring on AI optimism, Wu argues that the very capabilities that make Mythos revolutionary—its ability to identify cyber vulnerabilities and potentially enable devastating attacks—have led to extreme restrictions: access limited to just 50 users, with the White House considering executive orders to regulate future AI releases. This creates a critical disconnect: if AI’s most advanced forms are locked down for national security, they can’t be monetized at scale, undermining the entire AI investment thesis. Meanwhile, stock market gains are driven not by real productivity gains but by massive hyperscaler capital spending that inflates revenue and profit margins for chipmakers and suppliers—while the actual cost is deferred as capex. Wu warns that this artificial earnings boom could collapse if AI’s real-world utility remains restricted. He also highlights a deeper market dissonance: while equities are pricing in AI-driven growth, bond markets are pricing in a prolonged Middle East conflict, rising oil prices, and inflation—especially as global oil inventories dwindle ahead of summer demand.