There’s a Gigantic Problem at the Heart of the AI Industry That Could Cause the Whole Thing to Collapse

AI companies have been scaling up large language models (LLMs) expecting increased power, but the cost of inference is rising exponentially, causing diminishing returns and threatening profitability. This trend raises concerns about a potential AI industry collapse that could impact economies heavily invested in AI technology. Experts also warn that hardware advancements are slowing, compounding challenges for sustaining AI growth.