Gary Marcus: the great generative AI unraveling has begun

GaryMarcus · x · 2026-11-14

Gary Marcus argues the generative AI unraveling is underway, recapping his warnings since August 2023: everyone trains similar models on similar data so nobody has a technical moat, price wars have arrived and profits remain elusive. Training is absurdly expensive — the Claude 5.5 family reportedly cost $10B — and inference isn't cheap either. Studies show poor LLM reliability and weak ROI, and he cites the possible AI-authored Microsoft outage and Klarna's rehiring of humans as signs things are falling apart faster than the trillions being invested can justify.

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