Anthropic was forced to shut down its Mythos and Fable models due to US export controls after a jailbreak by Amazon researchers, illustrating how AI hype backfired and drew government scrutiny.
The AI tokenomics bubble is bursting as customers revolt against high costs of token-based billing; companies like Uber, Meta, and banks burned through budgets with no clear ROI.
OpenAI and Anthropic are considering drastic price cuts within months of introducing token billing, but their business models are unsustainable due to massive subsidies (e.g., $200 subscriptions allowing up to $14,000 in token usage).
Generative AI lacks a viable business model: costs far exceed value, training expenses are unavoidable COGS, and companies rely on subsidies, FOMO, and executive ignorance rather than real profitability.