OpenAI’s freshly launched GPT-5 large language model (LLM) has sparked mixed reactions, igniting a bigger question: can AI chatbots ever become truly profitable? While Sam Altman touts GPT-5 as the most advanced AI yet-capable of intelligently routing prompts between specialized sub-models-many users complain about slower replies, convoluted answer structures, and a frustrating inability to retain context, even with its larger context window.
Some industry watchers believe the business model is the real Achilles’ heel. 
Unlike Netflix, which built a moat through exclusive, high-value content, most AI chatbots today offer similar capabilities. This lets free users hop between platforms with little friction, making it harder for providers to lock in paying customers. Meanwhile, running these increasingly complex models costs a fortune, and the race to add flashy new features to stand out only makes the economics worse.
Bank of America’s Michael Hartnett warns that the telltale sign of an AI bubble collapse will be widening tech credit spreads-just as in the late 1990s before the dot-com crash. He notes that the same small group of stocks (Mag7 plus AVGO, ORCL, and PLTR) are driving most of the S&P 500’s gains, and that AI’s cash burn could soon threaten overbuilding. The numbers are staggering: around 250 new US data centers are under construction, and AI-related spending could add $624 billion-over 2%-to the US GDP in 2025 alone. But excesses in capital spending often breed inefficiency, setting the stage for a market correction.
Critics argue that AI still struggles with basic comprehension and accuracy, while others say its lack of sentience and moral reasoning limits its use in positions of responsibility. Supporters counter that AI will become as embedded in daily life as the internet itself, powering work, education, and entertainment. Still, the gap between promise and profit remains the trillion-dollar question-and the next few years may decide whether AI’s current boom ends in sustainable growth or a spectacular bust.