Observed Signal · May 23, 2026 · Analysis · Source: Exponential View · Impact: 3/5 · Sentiment: Negative
AI Backlash Grows Despite Soaring AI Revenues
The Exponential View commentary notes that Anthropic expects to turn a profit two years early, with projected Q2 revenue of $10.9 billion and operating profits of $559 million, even as public pushback against AI intensifies. Recent incidents include college audiences booing AI proponents (notably former Google CEO Eric Schmidt), interviews with students expressing distrust of AI, and U.S. Rep. Alexandria Ocasio-Cortez displaying muddy tap water in Georgia linked to Meta data center construction. The piece argues that visible, local harms (construction, environmental impacts, job fears) are driving resistance more effectively than technical explanations or futuristic promises from AI leaders such as Demis Hassabis.
Combines a notable commercial milestone (Anthropic profitability and large projected revenue) with evidence of growing public backlash and local impacts around AI infrastructure, which could influence public perception, regulatory scrutiny, and social license for AI deployments.
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Key Takeaways & Evidence Grounding
- Anthropic expects to turn a profit this quarter, reported as two years ahead of schedule.
- Anthropic is projected to gross $10.9 billion in revenue in Q2 and an operating profit of $559 million (per the article citing reported figures).
- Former Google CEO Eric Schmidt was booed at a college commencement while urging graduates to embrace AI.
- U.S. Representative Alexandria Ocasio-Cortez showed a jar of muddy brown tap water collected in Georgia shortly after Meta began building a data center there.
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Why Public Opinion Has Turned Against AI
Paul Krugman argues that widespread hostility to AI reflects multiple reinforcing causes: high-profile tech executives promoting apocalyptic job-loss scenarios, many people feeling AI is being forced on them by employers and platforms, visible environmental and local costs from massive datacenters, long‑running erosion of public trust in tech companies, and the perception that AI concentrates wealth among tech oligarchs. Krugman cites recent surveys (Pew; Reuters/Ipsos), executive statements from Anthropic, OpenAI and Microsoft, and examples of political pushback. He contends the industry’s earlier strategy of dramatizing AI’s economic power to attract funding and adoption helped provoke a distinct and potent backlash with real political consequences.
Widespread Backlash Against Generative AI Intensifies
Joe Lazer's Substack newsletter (Storytelling Edge) analyses a rapidly growing backlash against generative AI, arguing the sentiment shift now touches culture, business and politics. The piece cites multiple signals — booing of Eric Schmidt, an attack at Sam Altman’s home, young workers sabotaging AI rollouts, New York City parental opposition to AI in schools, and falling public approval in polls — to argue that AI populism and anti-AI branding may reshape adoption, corporate spending and regulation. Lazer discusses five illustrative stories (including big corporate token spending on Anthropic’s Claude Code, survey data on declining AI enthusiasm, and the NYC schools debate) and promotes a related podcast episode exploring these trends.
AI Fails to Win Over the Public
TechCrunch reports that public sentiment toward AI is worsening despite technological progress. Multiple polls and studies (Pew Research, CNBC, Economist/YouGov) show growing consumer concern about AI’s speed, trustworthiness, and social impact. Political actors and local communities are pushing back against AI infrastructure projects — Axios reported a memo from the National Republican Senatorial Committee warning that data centers hurt electoral chances — and publishers report tech firms offering local incentives to ease opposition to data-center builds. Industry leaders including Airbnb’s Brian Chesky and Anthropic’s Dario Amodei acknowledge a trust crisis and argue the sector has not yet delivered tangible benefits for everyday people.
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