The great Generative AI unraveling

Since August of 2023, I have been warning that, financially, generative AI might turn out to be a dud. As I outlined in the very next article after that was that the problem with generative AI was that everyone was following the same path, using very similar techniques, training on very similar datasets. I warned that as a consequence OpenAI (which was then flying high) would not be able to keep its lead; that nobody would have much of a technical moat, and that there would be price wars, and the profits would be hard to eke out. Three years later, prices are lower, competition is higher, and profits remain elusive.Training is ridiculously expensive and getting more expensive. The Claude 5.5 model family alone reportedly cost $10 billion...

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