""With the exception of Nvidia, which is selling shovels in a gold rush, most generative AI companies are both wildly overvalued and wildly overhyped," Gary Marcus, Emeritus Professor of Psychology and Neural Science at New York University, told DW. "My guess is that it will all fall apart, possibly soon. The fundamentals, technical and economic, make no sense."
Garran, meanwhile, believes the era of rapid progress in large language models (LLMs) is drawing to a close, not because of technical limits, but because the economics no longer stack up.
"They [AI platforms] have already hit the wall," Garran said, adding that the cost of training new models is "skyrocketing, and the improvements aren’t much better."
Striking a more positive tone, Sarah Hoffman, director of AI Thought Leadership at the New York-based market intelligence firm AlphaSense, predicted a "market correction" in AI, rather than a "cataclysmic 'bubble bursting.'"
After an extended period of extraordinary hype, enterprise investment in AI will become far more discerning, Hoffmann told DW in an emailed statement, with the focus "shifting from big promises to clear proof of impact."
"More companies will begin formally tracking AI ROI [return on investment] to ensure projects deliver measurable returns," she added."
https://www.dw.com/en/will-the-ai-bubble-burst-as-investors-grow-wary-of-returns/a-74636881