Has the generative AI bubble burst?

The reality might be more complex than it seems

Image by Araxhs Official from Pixabay (with added elements courtesy of Canva)

Over the past few years, generative AI has captured the tech world’s imagination. Startups, venture capitalists, and major corporations have poured billions into building and deploying models that can create everything from realistic images to human-like conversations. But as hype meets reality, there’s growing speculation: Has the generative AI bubble burst?

The initial boom

The explosion of interest in generative AI began with the release of models like OpenAI’s GPT-3 in 2020. These models demonstrated remarkable abilities to produce human-like text, stirring up excitement across various industries. Soon after, OpenAI, along with Google and Meta, raced to develop even more advanced models, pushing the limits of AI-generated content in art, writing, programming, and design.

Venture capital followed suit, leading to an influx of funding for generative AI startups. By late 2022, valuations soared, even for early-stage companies with little proven market traction. Everyone wanted a piece of what appeared to be the next tech revolution.