AI bubble nears burst as VC funding fails to match soaring costs

A Reddit post warns the AI bubble is showing strain: OpenAI shelved Sora, Anthropic tightened Claude limits, and VC funding can't keep up with consumer demand. The author argues that only three giants (OpenAI, Anthropic, Google) will likely survive, while a few category leaders like ElevenLabs, horizontals like LangChain and Lyzr, or major open-source native companies might endure. Gemini's recent limit increases are framed as a cost-cutting necessity, not pure growth. The post warns that if consumers lose jobs or money, or if most companies fail to convert clients under new costs, the bubble will burst—crippling the sector beyond a handful of leaders.