Recent developments suggest that the scaling hypothesis in AI - investing massive resources in data and GPUs to achieve artificial general intelligence - is hitting significant limitations. Major tech companies and investors are acknowledging diminishing returns from pure scaling approaches, with persistent issues like hallucinations and unreliability remaining unsolved. A market correction appears likely as the industry grapples with sustainability concerns and the need for new innovative approaches.

https://fortune.com/2025/02/19/generative-ai-scaling-agi-deep-learning/

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