The pressure to perform is becoming unprecedented for these firms, and the evidence suggests they won’t get a passing grade. An MIT study this summer found that of about 300 organizations that bought or built their own generative AI tools, 95% reported zero return on their investments. AI adoption has declined at large companies, according to Census Bureau surveys. Some observers have also pointed to what looks like circular deal making—a hallmark of the telecom bust. Nvidia is investing $100 billion in OpenAI, which plans to buy millions of Nvidia chips. That sort of funding loop could get dangerous if the market cools.

 

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