The One AI Truth Investors Totally Missed

In partnership with

Investors poured billions into reasoning AI… but did they miss the biggest flaw?

The AI G​old Rush Just Hit a Wall

For years, AI investors followed one rule: scale = smarter models. But the newest darling of Silicon Valley—reasoning AI—might be built on hype, not logic.

🔍 What’s going on?

• OpenAI, Google, and Anthropic have launched flashy n​ew models that “think step-by-step.”

• But recent research (👀 Apple, Salesforce, Anthropic itself) says… it might a​ll be smoke and mirrors.

• These models choke on classic logic tasks like Towers of Hanoi and river crossing puzzles.

💸 The kicker:

A​ll this tech runs on mountains of compute. Nvidia’s booming. Data centers are exploding. But what if reasoning AI… doesn’t scale?

📉 If that’s true, we’re looking at billions invested in something that can’t actually think

👇 Don’t miss the full breakdown

📖 Read the full blog post

🎥 And if you’re more of a watcher:

📺 Watch - AI Is Coming for the 85​%

Stay sharp,

The AI News Team

P.S. See the full story unfold — watch on The AI News YouTube!

Stay up-to-date with AI

The Rundown is the most trusted AI newsletter in the world, with 1,000,000+ readers and exclusive interviews with AI leaders like Mark Zuckerberg, Demis Hassibis, Mustafa Suleyman, and more.

Their expert research team spends all day learning what’s new in AI and talking with industry experts, then distills the most important developments into one free email every morning.

Plus, complete the quiz after signing up and they’ll recommend the best AI tools, guides, and courses – tailored to your needs.

Sign up to start learning.