According to Yann LeCun, AI labs like OpenAI and Anthropic are heading for a "big bubble explosion": Their operations are effectively subsidized by investors, and operating costs aren't dropping fast enough, he says. LeCun's criticism isn't entirely selfless: his own startup, AMI Labs, raised $1 billion for an alternative approach to AI.

Yann LeCun's comments renew a long-running spat with Musk and cast doubt over valuations of some of the world's biggest AI companies.

Yann LeCun called Musk's xAI a 'failure' and warned AI labs face a 'big bubble explosion' unless they raise prices, while raising $1bn for his own bet.

According to Yann LeCun, AI labs like OpenAI and Anthropic are heading for a "big bubble explosion": Their operations are effectively subsidized by investors, and operating costs…

Yann LeCun labeled Elon Musk's xAI a failure and warned that unchecked spending by AI labs could lead to a catastrophic big bubble explosion.