AI's Brokenomics
3 hours ago
- #government regulation
- #AI bubble
- #business models
- The author promotes a premium newsletter offering extensive analyses of AI industry players and bubbles.
- Anthropic's models Mythos and Fable were shut down by US export controls, citing national security risks.
- Anthropic faced government pushback and internal disputes over model safety and communication issues.
- AI companies like Anthropic and OpenAI rely on hype and myth to drive valuations, despite questionable business models.
- Token-based billing revealed high costs for enterprises, leading to customer revolt and potential price cuts.
- Generative AI lacks a sustainable business model, with subsidies masking true costs and no clear ROI.
- Meta and banks are cutting back on AI spending after realizing excessive costs without measurable benefits.
- KPMG's AI report contained hallucinations, undermining credibility and highlighting industry-wide issues.
- Silicon Valley's monoculture and dependency on hyperscalers stifle innovation and real startup growth.
- Anthropic and OpenAI are not real businesses but depend on big tech infrastructure and subsidies to operate.