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The Generative AI Con

Feb 18, 2025 - wheresyoured.at
The article criticizes the current state of generative AI, particularly focusing on the hype surrounding ChatGPT and other large language models (LLMs). It argues that despite the significant media attention and user numbers, generative AI has not proven to be a sustainable or profitable industry at the scale that some claim. The author points out that the media coverage is often led by companies with financial interests in AI, contributing to a hype cycle that inflates user numbers without demonstrating real-world impact or profitability. The article questions the validity of reported user statistics and criticizes the lack of transparency from companies like OpenAI regarding their financials and user engagement metrics.

Furthermore, the article highlights the financial struggles of AI companies, noting that both OpenAI and Anthropic are burning billions of dollars annually without clear paths to profitability. It criticizes the unrealistic revenue projections and the lack of a "killer app" that significantly changes users' lives or creates new industries, unlike past technological breakthroughs like the iPhone or cloud computing. The author expresses skepticism about the future of generative AI, questioning the business models and the actual utility of the products being developed.

Key takeaways:

  • The article criticizes the hype around generative AI, arguing that it is not a sustainable or real industry at the trillion-dollar scale claimed by some.
  • It questions the reported user numbers for ChatGPT, suggesting that media coverage and availability have inflated its perceived importance.
  • The article highlights the financial struggles of companies like OpenAI and Anthropic, which are burning billions of dollars without clear paths to profitability.
  • It argues that despite significant investment and attention, generative AI has not produced a "killer app" or transformative product that significantly impacts daily life.
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