Technology

From prophet to product: How AI came back down to earth in 2025

Source

Ars Technica

Published

Dec 31, 2025

TL;DR

AI Generated

In 2025, the AI industry shifted from hype to pragmatism, acknowledging the technology's imperfections and need for significant technical advancements. Despite ongoing lofty claims of achieving artificial general intelligence (AGI) or superintelligence (ASI), there is a growing recognition that practical AI solutions are currently more viable for commercial success. The year saw contrasting developments, such as OpenAI's CEO claiming AGI capabilities in January, but celebrating GPT-5.1's ability to use em dashes correctly by November. Nvidia's valuation soared, but concerns arose about a potential AI bubble reminiscent of the dotcom crash. Tech giants planned massive data centers while researchers delved into the reality behind the industry's most advanced AI systems.

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