2025 may spell the end of go-go years for AI breakthroughs

The scaling of large language models has hit the point of diminishing returns. This could force the biggest companies riding the AI wave to rethink their strategy.

The year gone by saw the biggest technology companies in the world push full steam ahead with massive investments in artificial intelligence. They raced to make their AI models bigger, more powerful and better. But that growth seems headed for a few speedbreakers in the year that has just begun.

In the past month, multiple news reports indicated that OpenAI, Google and Anthropic—some of the companies in the vanguard of AI development—are struggling to build more advanced AI models. 

Broadly speaking, indications are that companies that spent billions of dollars developing AI models and others that made billions of …

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Sethu Pradeep

Sethu writes on all things technology at The Morning Context. He previously worked as a senior sub-editor at Indian Express.

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sethu@mailtmc.com

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