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dir=\"auto\" class=\"body markup\"><p><span>AGI didn’t materialize (contra predictions from </span><a href=\"https://open.substack.com/pub/garymarcus/p/10-million-says-we-wont-see-human?utm_campaign=post-expanded-share&amp;utm_medium=web\">Elon Musk</a><span> and others); GPT-5 was underwhelming, and didn’t solve hallucinations. LLMs still aren’t reliable; the economics look dubious. Few AI companies aside from Nvidia are making a profit, and nobody has much of a technical moat. OpenAI has lost a lot of its lead. Many would agree we have reached a point of diminishing returns for scaling; faith in scaling as a route to AGI has dissipated. Neurosymbolic AI (a hybrid of neural networks and classical approaches) is starting to rise. No system solved more than 4 (or maybe any) of the</span><a href=\"https://garymarcus.substack.com/p/where-will-ai-be-at-the-end-of-2027\"> Marcus-Brundage tasks</a><span>. Despite all the hype, agents didn’t turn out to be reliable. Overall, by my count, sixteen of my seventeen “high confidence” </span><a href=\"https://open.substack.com/pub/garymarcus/p/25-ai-predictions-for-2025-from-marcus?utm_campaign=post-expanded-share&amp;utm_medium=web\">predictions about 2025</a><span> proved to be correct. (You can see the </span><a href=\"https://open.substack.com/pub/garymarcus/p/25-ai-predictions-for-2025-from-marcus?utm_campaign=post-expanded-share&amp;utm_medium=web\">full list here</a><span>).</span></p><div class=\"captioned-image-container\"><figure><a target=\"_blank\" href=\"https://substackcdn.com/image/fetch/$s_!Hyif!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F151ba2e0-a6ff-4a53-b1b6-f149a6cfd77a_2420x1381.jpeg\" data-component-name=\"Image2ToDOM\" class=\"image-link image2 is-viewable-img can-restack\"><div class=\"image2-inset\"><picture><source type=\"image/webp\" srcset=\"https://substackcdn.com/image/fetch/$s_!Hyif!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F151ba2e0-a6ff-4a53-b1b6-f149a6cfd77a_2420x1381.jpeg 424w, https://substackcdn.com/image/fetch/$s_!Hyif!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F151ba2e0-a6ff-4a53-b1b6-f149a6cfd77a_2420x1381.jpeg 848w, https://substackcdn.com/image/fetch/$s_!Hyif!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F151ba2e0-a6ff-4a53-b1b6-f149a6cfd77a_2420x1381.jpeg 1272w, https://substackcdn.com/image/fetch/$s_!Hyif!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F151ba2e0-a6ff-4a53-b1b6-f149a6cfd77a_2420x1381.jpeg 1456w\" sizes=\"100vw\"/><img src=\"https://substackcdn.com/image/fetch/$s_!Hyif!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F151ba2e0-a6ff-4a53-b1b6-f149a6cfd77a_2420x1381.jpeg\" width=\"1456\" height=\"831\" 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srcset=\"https://substackcdn.com/image/fetch/$s_!Hyif!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F151ba2e0-a6ff-4a53-b1b6-f149a6cfd77a_2420x1381.jpeg 424w, https://substackcdn.com/image/fetch/$s_!Hyif!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F151ba2e0-a6ff-4a53-b1b6-f149a6cfd77a_2420x1381.jpeg 848w, https://substackcdn.com/image/fetch/$s_!Hyif!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F151ba2e0-a6ff-4a53-b1b6-f149a6cfd77a_2420x1381.jpeg 1272w, https://substackcdn.com/image/fetch/$s_!Hyif!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F151ba2e0-a6ff-4a53-b1b6-f149a6cfd77a_2420x1381.jpeg 1456w\" sizes=\"100vw\" fetchpriority=\"high\" class=\"sizing-normal\"/></picture><div class=\"image-link-expand\"><div class=\"pencraft pc-display-flex pc-gap-8 pc-reset\"><button tabindex=\"0\" type=\"button\" class=\"pencraft pc-reset pencraft icon-container restack-image\"><svg aria-hidden=\"true\" width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\" stroke-width=\"1.5\" stroke=\"var(--color-fg-primary)\" stroke-linecap=\"round\" stroke-linejoin=\"round\" xmlns=\"http://www.w3.org/2000/svg\"><g><path d=\"M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882\"></path></g></svg></button><button tabindex=\"0\" type=\"button\" class=\"pencraft pc-reset pencraft icon-container view-image\"><svg xmlns=\"http://www.w3.org/2000/svg\" width=\"20\" height=\"20\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\" class=\"lucide lucide-maximize2 lucide-maximize-2\"><polyline points=\"15 3 21 3 21 9\"></polyline><polyline points=\"9 21 3 21 3 15\"></polyline><line x1=\"21\" x2=\"14\" y1=\"3\" y2=\"10\"></line><line x1=\"3\" x2=\"10\" y1=\"21\" y2=\"14\"></line></svg></button></div></div></div></a><figcaption class=\"image-caption\">This newsletter’s predictions from last year about AI in 2025.</figcaption></figure></div><p>§</p><p>Here are six or seven predictions for 2026; the first is a holdover from last year that no longer will surprise many people.</p><ol><li><p>We won’t get to AGI in 2026 (or 7). At this point I doubt many people would publicly disagree, but just a few months ago the world was rather different. Astonishing how much the vibe has shifted in just a few months, especially with people like Sutskever and Sutton coming out with their own concerns.</p></li><li><p>Human domestic robots like Optimus and Figure will be all demo and very little product. Reviews by Joanna Stern and Marques Brownle of one early prototype were damning; there will be tons of lab demos but getting these robots to work in people’s homes will be very very hard, as Rodney Brooks has said many times.</p></li><li><p><a href=\"https://open.substack.com/pub/garymarcus/p/a-deeply-implausible-premise-is-behind?utm_campaign=post-expanded-share&amp;utm_medium=web\">No country will take a decisive lead in the GenAI “race”</a><span>. </span></p></li><li><p><span>Work on new approaches such as </span><a href=\"https://open.substack.com/pub/garymarcus/p/generative-ais-crippling-and-widespread?utm_campaign=post-expanded-share&amp;utm_medium=web\">world models</a><span> and </span><a href=\"https://open.substack.com/pub/garymarcus/p/how-o3-and-grok-4-accidentally-vindicated?utm_campaign=post-expanded-share&amp;utm_medium=web\">neurosymbolic</a><span> will escalate.</span></p></li><li><p><span>2025 will be known as the year of the </span><a href=\"https://garymarcus.substack.com/p/peak-bubble\">peak bubble</a><span>, and also the moment at which Wall Street began to lose confidence in generative AI. Valuations may go up before they fall, but the Oracle craze early in September and what has happened since will in hindsight be seen as the beginning of the end.</span></p></li><li><p><a href=\"https://open.substack.com/pub/garymarcus/p/a-sad-day-for-america?utm_campaign=post-expanded-share&amp;utm_medium=web\">Backlash to Generative AI and radical deregulation will escalate</a><span>. In the midterms, AI will be an election issue for first time. Trump may eventually distance himself from AI because of this backlash.</span></p></li></ol><p>And lastly, the seventh: a metaprediction, which is a prediction about predictions. I don’t expect my predictions to be as on target this year as last, for a happy reason: across the field, the intellectual situation has gone from one that was stagnant (all LLMs all the time) and unrealistic (“AGI is nigh”) to one that is more fluid, more realistic, and more open-minded. If anything would lead to genuine progress, it would be that.</p><div class=\"subscription-widget-wrap\"><div class=\"subscription-widget show-subscribe\"><div class=\"preamble\"><p>Want more on-target predictions? 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xmlns=\"http://www.w3.org/2000/svg\"><g><path stroke=\"none\" d=\"M9.99915 16.7256C9.90515 16.7256 9.79102 16.692 9.65674 16.6249C9.52246 16.5622 9.3949 16.4906 9.27405 16.41C8.02974 15.6044 6.94657 14.7584 6.02454 13.8722C5.10697 12.9815 4.3953 12.0662 3.88953 11.1262C3.38375 10.1818 3.13086 9.23067 3.13086 8.27283C3.13086 7.63725 3.23157 7.05762 3.43298 6.53394C3.63888 6.01025 3.92086 5.55819 4.27893 5.17773C4.64148 4.79728 5.05774 4.50635 5.52771 4.30493C6.00216 4.09904 6.51241 3.99609 7.05847 3.99609C7.73433 3.99609 8.31844 4.16618 8.81079 4.50635C9.30762 4.84652 9.70374 5.28963 9.99915 5.83569C10.299 5.28516 10.6951 4.84204 11.1875 4.50635C11.6843 4.16618 12.2707 3.99609 12.9465 3.99609C13.4836 3.99609 13.9894 4.09904 14.4639 4.30493C14.9428 4.50635 15.3613 4.79728 15.7194 5.17773C16.0774 5.55819 16.3572 6.01025 16.5586 6.53394C16.7645 7.05762 16.8674 7.63725 16.8674 8.27283C16.8674 9.23067 16.6145 10.1818 16.1088 11.1262C15.603 12.0662 14.8891 12.9815 13.967 13.8722C13.0495 14.7584 11.9708 15.6044 10.731 16.41C10.6056 16.4906 10.4758 16.5622 10.3416 16.6249C10.2118 16.692 10.0976 16.7256 9.99915 16.7256Z\"></path></g></svg></div>Liked by Gary Marcus</button></div></div><div class=\"pencraft pc-display-flex pc-flexDirection-column pc-reset flex-grow-rzmknG\"></div><div class=\"pencraft pc-display-flex pc-reset comment-menu-trigger-container triggerContainer-eX588u\"><button tabindex=\"0\" type=\"button\" aria-label=\"Ellipsis\" id=\"radix-P0-87\" aria-haspopup=\"menu\" aria-expanded=\"false\" data-state=\"closed\" class=\"pencraft pc-reset pencraft trigger-j08Uop iconButton-mq_Et5 iconButtonBase-dJGHgN buttonBase-GK1x3M buttonStyle-r7yGCK size_sm-G3LciD priority_quaternary-kpMibu\"><svg xmlns=\"http://www.w3.org/2000/svg\" width=\"16\" height=\"16\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\" class=\"lucide lucide-ellipsis\"><circle cx=\"12\" cy=\"12\" r=\"1\"></circle><circle cx=\"19\" cy=\"12\" r=\"1\"></circle><circle cx=\"5\" cy=\"12\" r=\"1\"></circle></svg></button></div></div><div class=\"comment-body expanded\"><p><span>Hallucination is seriously an issue. I am asking the same question one under my account and the other is in Chrome incognito mode. Totally different answers which is jaw dropping… Very misleading… </span></p></div><div class=\"pencraft pc-display-flex pc-gap-16 pc-paddingTop-8 pc-justifyContent-flex-start pc-alignItems-center pc-reset comment-actions withShareButton-hQzuEn\"><span class=\"pencraft pc-reset decoration-hover-underline-ClDVRM reset-IxiVJZ\"><a class=\"pencraft pc-reset link-_X6et2 link-LIBpto\"><div class=\"pencraft pc-display-flex pc-gap-6 pc-alignItems-center pc-reset\"><svg xmlns=\"http://www.w3.org/2000/svg\" width=\"16\" height=\"16\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"var(--color-fg-secondary-themed)\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\" class=\"lucide lucide-message-circle\"><path d=\"M7.9 20A9 9 0 1 0 4 16.1L2 22Z\"></path></svg><div class=\"pencraft pc-reset color-pub-secondary-text-hGQ02T line-height-20-t4M0El font-meta-MWBumP size-11-NuY2Zx weight-medium-fw81nC transform-uppercase-yKDgcq reset-IxiVJZ meta-EgzBVA 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