Generative AI has been massively subsidized in the hopes that, if they just keep piling more money and data into the furnace, it will become essential to daily life and then they can raise the price and make a profit.
Unfortunately, while LLMs do some interesting stuff, there just isn't that much demand for technology that sometimes produces half-decent results and sometimes shoots you in the face.
It might be rising user costs that pop the bubble, or it might just be companies failing to repay the trillions in debt they've racked up to build these datacentres. The AI buildout is literally consuming the vast majority of the entire world's investment funding, and all we'll have at the end of it is some extremely niche and expensive datacentres, full of GPUs that can't be used for anything else and burn out after a few years. And to run them, we only need to sell another 10 billion ChatGPT subscriptions.
That is assuming the datacentres even get built. Right now they are facing a few minor problems with reality, like, we're acting like this is a videogame where you can just build 500 new nuclear power stations if you have the imaginary money for it. But we still have to pretend like the datacentres are actually being built, because the stock market runs on Looney Tunes physics and if we look down we all die in an economic crash that will require the Great Depression to be renamed like the Great War was.