2 months ago
- 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.
- Silicon Valley's monoculture is collapsing as AI startups are revealed not to be independent but subsidiaries of big tech; the era of hype-driven growth is ending with customers and regulators pushing back.