Generative Artificial Intelligence

This is a look into how an AI bubble burst might play out. The biggest issue is money, companies like OpenAI and Anthropic are burning money with no good way to turn it profitable. Google can "win" the AI race just by continuing to spend money, and wait for the others to crash and burn.

OpenAIs recent attempts to turn a profit (shopping and sora) are both failing, and they've resulted to trying ads (which they had previously described as a last resort).

Anthropic is capturing the developer market, but some reports say their metered models cost 5x more than what people pay for them. It doesn't matter that they're having market success, if more users just means burning way more money.

If multiple major players crash or have to get bought out, we may see several major datacenters shutdown or underperform, which could have a strong ripple effect on the economy.

Noteworthy, this article doesn't include anything about the US government's involvement in AI. The US considers AI a race to reach AGI before china, and may attempt to prop up a failing AI market to achieve this.