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The Subprime AI Crisis

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Edward Zitron evaluates the generative AI boom as unsustainable and predicts its eventual collapse, which may be ruinous for big tech and the startup ecosystem. OpenAI's valuation, fundraising, and potential transition from non-profit to for-profit, alongside the launch of the costly and flawed model 'o1 (Strawberry)', are discussed as indicators of the instability in AI.

  • Generative AI boom may collapse
  • OpenAI valued at $150B
  • OpenAI launching 'o1 model'
  • o1 model has high costs
  • Market skepticism of AI ROI