"Father of AI" latest warning: Musk's xAI has "failed" and the AI industry may face a "big bubble burst"

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Jin Se Finance reports that on June 18, according to CNBC, Yann LeCun, dubbed the “godfather of AI,” publicly launched a barrage of criticism at Elon Musk’s xAI for having “failed,” and warned that if the entire AI industry does not quickly cut costs and improve pricing, it will face the risk of a “major bubble burst.”
LeCun currently serves as the founder of AMI Labs. He said bluntly that xAI’s core founding team has already left in large numbers, and that it is now extremely difficult for Musk to recruit top AI talent, leaving xAI unable to compete with OpenAI and Anthropic in the field of cutting-edge AI. At the same time, he noted that the rate at which the operating costs of AI services are declining is far slower than expected; in practice, major labs are currently relying on investors’ funds to subsidize user usage, and this model is difficult to sustain.
LeCun’s remarks have again sparked market questions about the reasonableness of valuations for leading AI companies and have thrown a bucket of cold water on the investment fervor that has kept the current AI industry running hot. The AMI Labs he founded only just completed a $1 billion financing round in March this year, with a pre-money valuation of $3.5 billion. It focuses on research into “world models,” which he believes represent the direction of the next stage of AI.
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