Now the risk of an AI bubble isn't that AI lacks real world utility. Rather, it's that AI is advancing so quickly that capabilities are already saturating for most everyday tasks, and it is becoming commoditized. I didn't feel much difference between Opus 4.8 and Fable 5.1, and most tasks don't require a Fields Medalist.
We don't need smarter models but we need faster and cheaper ones. Also, for almost every frontier model released, an open-weights equivalent follows within six months. Unless this dynamic changes, the business becomes far less lucrative.