The AI Hype Crisis

In June 2024, Goldman Sachs published a research note that rattled Silicon Valley's most cherished assumptions. The report posed what it called the “$600 billion question”: would the staggering investment in artificial intelligence infrastructure ever generate proportional returns? The note featured analysis from MIT economist Daron Acemoglu, who had recently calculated that AI would produce no more than a 0.93 to 1.16 percent increase in US GDP over the next decade, a figure dramatically lower...