The great Generative AI unraveling

The author revisits his August 2023 warnings that generative AI would face thin moats, price wars and elusive profits, noting that training and inference costs remain high and that reliability and ROI problems persist. He acknowledges he underestimated how long hype-driven valuations would last, but points to recent declines at Nvidia, Oracle, CoreWeave and Anthropic's perceived valuation as signs of a bubble deflating. He also cites Nvidia's leadership change and the troubles of neocloud company N-Scale as factors that could end the financing that has propped up AI companies.