The enthusiasm for large language models (LLMs) has faded as their limitations become apparent. Initially heralded as transformative technologies capable of curing cancer and automating jobs, these AI tools are proving to be inaccurate, limiting productivity gains and failing to deliver on their promises. The industry struggles with diminishing returns, and no AI company has achieved profitability; even market leader OpenAI is grappling with soaring costs and stagnant revenue as users grow disillusioned. Despite the bleak outlook, over a trillion dollars continues to flood this sector, inflating the valuations of key players like Nvidia. As the reality sets in that these technologies may not improve significantly, stakeholders must re-evaluate strategies for sustaining investment and avoiding valuation crashes. The growing skepticism around AI underscores the need for innovation and practical applications in the industry.
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