Source: Thebignewsletter
The article flags a widening gap between AI's astronomical valuations and the actual economic returns being generated, a tension that intensifies as enterprise adoption remains sluggish and use cases narrow to specific verticals. If capital markets correct, consumer-facing AI products built on venture funding dry up fastest, while entrenched enterprise vendors and chipmakers absorb losses—concentrating AI power further rather than democratizing it. This means the next generation of consumer tools will be built not by scrappy startups funded on hype, but by established tech platforms cannibalizing existing revenue streams.