The AI Bubble Is Not What You Think (kuber.studio)

Recent discussions in the AI community have focused on Anthropic's enforcement of subscription restrictions on their Claude Code, particularly blocking tools like opencode. While many speculate this move is aimed at curbing abuse from heavy users on max plans, a broader issue has emerged: the AI industry is significantly subsidized by venture capital, masking the true costs of model training and inference. The actual expenses are far higher due to high burn rates associated with infrastructure and hardware, compounded by the rapid turnover of new models. This situation raises concerns about the sustainability of the AI market, as experts predict a potential bubble burst not because of the technology's efficacy, but due to the industry's eventual reckoning with rising costs. As pricing pressures mount and venture capital support wavers, interest from developers and businesses may diminish. Speculations suggest this could happen as soon as 2026 or 2027, prompting the AI/ML community to grapple with not just innovation, but the economic realities that underpin it.