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The AI bubble is 17 times the size of the dot-com frenzy - and four times subprime, this analyst argues - "'So, in summary; you can't create an app with commercial value as it is either generic (games etc), which won't sell, or it is regurgitated public domain (homework), or it is subject to copyright. It's hard to advertise effectively, LLMs cost an exponentially larger amount to train each generation, with a rapidly diminishing gain in accuracy. There's no moat on a model, so there's little pricing power. And the people who use LLMs the most are using them to access compute that costs the developer more to provide than their monthly subscriptions,' he says."
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