Is AI a bubble that's about to burst?

Front Burner

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ChatGPT took the world by storm when it launched in November of 2022, prompting massive investment in generative AI technology as tech companies rushed to capitalize on the hype. But nearly two years and billions of dollars later, the technology seems to be plateauing — and it's still not profitable. After tech stocks took a hit in early August, concerns are growing in both the tech press and on Wall Street that generative AI may be a bubble, and that it may soon burst.

Paris Marx — author of the newsletter Disconnect and host of the podcast Tech Won't Save Us — has been warning about this for a long time. He explains why, and what these recurring hype cycles tell us about a tech industry increasingly focused on value for shareholders over good products for users.

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