
#290 How AI Boom’s Multi-Billion Dollar Blind Spot
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future potential of AI, particularly focusing on "reasoning models." While many in the industry are investing heavily in AI's purported ability to "think" and "reason" like humans, leading to predictions of superintelligence, new research suggests this capability may be an "illusion." Studies indicate that AI models excel at tasks similar to their training data but struggle with novel or complex problems, exhibiting a lack of generalizability. This raises questions about the true progress toward artificial general intelligence (AGI) and whether the immense financial and corporate commitments to current AI development will yield the anticipated revolutionary benefits. The discussion highlights a debate among major AI players regarding the "scaling law" and the fundamental limitations of present-day AI, potentially impacting the entire AI market and its investors.