Leopold’s Folly

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• Gary Marcus frames the generative AI industry as potentially symbolizing an era characterized by “Leopold’s Folly,” drawing an analogy to a historical event or misstep.
• He likens the industry’s financial dynamics to “check-kiting,” noting “circular elements” where speculative debts are issued without clear assurance of future repayment, though he clarifies it’s not outright fraud.
• The article warns that current investments and debts in the generative AI sector are “extraordinarily speculative,” raising concerns that promised “trillions of dollars in profits” may not materialize and existing debts might not be paid off.