Hyperscalers could end up resembling airlines—plagued by small margins, intense competition, and high expenses, AI skeptic warns

Gary Marcus warns that AI hyperscalers like Microsoft, Meta, and Alphabet are facing challenges similar to airlines, including high expenses, intense competition, and low margins. The industry's arms race for computing power has led to price wars and reliance on open-source Chinese models like DeepSeek and Zhipu AI as costs rise.