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56m ago

MIT Says 95% of GenAI Projects Show No ROI as Meta Freezes AI Hiring

Investors are rethinking AI bets as implementation failures, not model quality, block measurable gains.

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Mustafa Suleyman, chief executive officer of of Microsoft AI, speaks during an event commemorating the 50th anniversary of the company at Microsoft headquarters in Redmond, Washington, US, on Friday, April 4, 2025. Microsoft Corp., determined to hold its ground in artificial intelligence, will soon let consumers tailor the Copilot digital assistant to their own needs. Photographer: David Ryder/Bloomberg via Getty Images

Overview

  • MIT’s “GenAI Divide” study finds 95% of enterprise deployments produced no measurable profit impact, citing misaligned workflows, weak feedback loops, and verification costs as primary barriers.
  • Enterprises have spent an estimated $30–40 billion on generative AI and U.S. VCs put about $49 billion into GenAI startups in H1 2025, even as markets show fresh caution about near‑term payoffs.
  • Meta confirmed a pause on AI hiring tied to a reorganization of its Superintelligence Labs, freezing internal transfers and requiring top‑level approval for any new roles.
  • A source told AFP that Meta agreed to a cloud deal with Google worth more than $10 billion over six years, a report Meta declined to comment on.
  • OpenAI reported its first $1 billion revenue month in July and described “voracious” compute demand, as CEO Sam Altman warned investors are overexcited and forecast massive future datacenter spending.