Comment by akst

"The amount being spent on AI data centres not paying off" is a different statement to "AI is not worth investing in". They're effectively saying the portions people are investing are disproportionately large to what the returns will end up being.

It's a difficult thing to predict, but I think there's almost certainly some wasteful competition here. And some competitors are probably going to lose hard. If models end up being easy to switch between and the better model is significantly better than its competitors, than anything invested in weaker models will effectively be for nothing.

But there's also a lot to gain from investing in the right model, even so it's possible those who invested in the winner may have to wait a long time to see a return on their investment and could still possibly over allocate their capital at the expense of other investment opportunities.