Gradual progress instead of revolution: The reality of AI development in 2025

Staff Report: PNN

At the start of 2025, AI investment seemed limitless. Top tech companies and startups received hundreds of millions of dollars, with investor enthusiasm at its peak. OpenAI alone received $40 billion in a $300 billion valuation. Other companies completed $2 billion seed rounds without even launching products.

However, the second half of the year brought a “reality check.” Concerns over user safety, business model viability, and technical progress grew. New AI models appeared, but their impact was incremental rather than revolutionary, focusing on specific applications.

High infrastructure spending raised challenges such as electricity supply, land use, and local objections, causing some projects to face uncertain funding. Legal issues, mental health impact of AI chatbots, and security risks also emerged as concerns.

Experts conclude that 2025 was the year AI “matured,” and 2026 will demand answers to difficult questions. The era of rapid, high-valued investment may be ending, giving way to the challenge of proving tangible results.

Source: TechCrunch