AnalysisBusinessJune 28, 2026

Gary Marcus: US AI industry faces wreckage from China catch-up

Gary Marcus argues that the US AI industry faces a crisis as China catches up, intensifying price wars and eroding profits. He identifies the current paradigm as wildly inefficient, unreliable, and easily replicated, making premium pricing unsustainable. Marcus warns that the race to sell the cheapest LLMs may wreck US AI companies.

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