The author is conflating a financial correction with a technological failure.

I agree that the economics of GenAI are currently upside down. The CapEx spend is eye-watering, and the path to profitability for the foundational model providers is still hazy. We are almost certainly in an age of inflated-expectations hype-cycle peak that will self-correct, and yes, "winter is harsh on tulips".

However, the claim that the technology itself is a failure is objectively disconnected from reality. Unlike crypto or VR (in their hype cycles), LLMs found immediate, massive product-market fit. I use K-means clustering and logistic regression every day; they aren't AGI either, but they aren't failures.

If 95% of corporate AI projects fail, it's not because the tech is broken; it's because middle management is aspiring to replace humans with a terminal-bound chatbot instead of giving workers an AI companion. The tech isn't going away, even if AI valuations might be questioned in the short term.