Gary Marcus says the generative AI bubble is close to bursting
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Gary Marcus warned that the financial bubble in generative AI is close to bursting, and listed the related companies' stock price and valuation changes: Nvidia fell 29% over the past six months, Oracle fell 35%, and CoreWeave fell 54%; Anthropic's valuation shrank 25% within weeks, and its IPO target dropped from $2 trillion to $1.5 trillion. The above figures and the judgment that the "bubble is close to bursting" all come from Marcus himself; they are his interpretation of current market trends, not a confirmed industry conclusion.
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- Gary MarcusThe 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.
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