The AI bubble is deflating, and a new, even more dangerous one is on the horizon

The mood in tech is shifting, and it's getting harder to ignore. It's not that artificial intelligence suddenly stopped working or that the models got worse. The magic simply wore off, and people finally looked at the real costs. A year ago, everything revolved around AI: every demo, every startup, every README on GitHub. You could slap an "LLM-powered" label on any half-finished feature, and people would applaud as if you'd invented electricity. It felt like we'd found a cheat code for a game we'd been playing for years. Now those same demos get a quiet nod. Cool. Interesting. How much does it cost? How fast does it run? Who maintains it?

This shift marks an important stage in AI's development. We're moving past unchecked optimism and faith in limitless possibilities toward a more mature phase that puts practicality, efficiency, and profitability first. Investors and companies are no longer willing to pour money blindly into projects built on hype alone. They want to see real results, measurable value, and sustainable business models.

But as the "AI bubble" deflates, a new and potentially even more dangerous trend is emerging: monopolies are forming, and the market is consolidating in the hands of a few major players. Companies with massive compute, huge volumes of data, and access to top talent are pulling further ahead of everyone else. The result is a market where innovation slows and new players have limited room to compete.

The consequences of this consolidation could be serious. First, it could reduce competition and drive up prices. Second, it could narrow the range of approaches and solutions in AI. Third, it could create risks tied to a small number of companies controlling the technology. AI can have an enormous impact on every area of our lives, far beyond what an ordinary tool can do. That's why it matters that AI development stays open, transparent, and accessible to everyone.

In short, the deflation of the "AI bubble" is a natural and, on the whole, positive process. It marks a transition to a more mature and responsible approach to developing the technology. But we shouldn't lose sight of the new risks that come with market consolidation and monopoly formation. Steps are needed to preserve competition, encourage innovation, and ensure broad access to AI's capabilities. Only then can we fully realize the technology's potential and avoid its negative consequences.