AI Scaling Wall
The AI Scaling Wall is the proposition that improvements in generative artificial intelligence (AI), driven by greater training data, computing power, and model size, are reaching diminishing returns.[1][2][3] The idea proposes an imminent limit to the AI scaling laws, a term OpenAI coined in 2020 after Baidu researchers showed predictable performance gains from increasing resources such as training data or computing power.[2][4] In November 2024, reports indicated that OpenAI's GPT-4.5 model fell short of expectations, while Google's Gemini and Anthropic's Claude 3.5 Opus also faced delays or disappointing results.[5][6][7] Ilya Sutskever said that gains from scaling up pre-training had plateaued, and Gary Marcus argued that models had reached diminishing returns.[6][7] Sam Altman, Jensen Huang, and Dario Amodei disputed this.[1][5][8] Proposed causes include the exhaustion of human-made training data, which Epoch AI predicted could occur by 2028, and limits on computing power and energy.[6][7][8] Synthetic data offers a partial remedy, but a Nature study warned of model collapse from its indiscriminate use.[8][9] Amodei said training runs could cost $100 billion in coming years.[8][10] Companies have turned to test-time compute, used in OpenAI's o1 model, which Huang described as a second scaling law.[1][7] The improvement seen in GPT-5 was widely seen as underwhelming and fell below expectations.[11] One 2025 analysis estimated that each tenfold rise in compute yields only one to two percentage points of MMLU-Pro accuracy.[12] Analysts noted that United States export controls and safety policy were built on assumptions of continued growth in model size.[2]
References
- ↑ 1.0 1.1 1.2 The Economist 2026.
- ↑ 2.0 2.1 2.2 Booth 2024.
- ↑ Heath 2024.
- ↑ Morrow 2024.
- ↑ 5.0 5.1 Bosa & Wu 2024.
- ↑ 6.0 6.1 6.2 Chowdhury & Nolan 2024.
- ↑ 7.0 7.1 7.2 7.3 Hu & Tong 2024.
- ↑ 8.0 8.1 8.2 8.3 Chowdhury et al. 2024.
- ↑ Hashmi 2026.
- ↑ Metz et al. 2024.
- ↑ Heikkilä et al. 2025.
- ↑ Shukla 2025.
Works cited
- "Nvidia’s boss dismisses fears that AI has hit a wall" (in en). 21 Nov 2024. https://www.economist.com/business/2024/11/21/nvidias-boss-dismisses-fears-that-ai-has-hit-a-wall.}
- Booth, Harry (21 November 2024). "Has AI Progress Really Slowed Down?" (in en). https://time.com/7178328/is-ai-progress-slowing-down/.
- Bosa, Deirdre; Wu, Jasmine (11 December 2024). "The limits of intelligence — Why AI advancement could be slowing down" (in en). https://www.cnbc.com/2024/12/11/why-ai-advancement-could-be-slowing-down.html.
- Chowdhury, Hasan; Kanetkar, Riddhi; Nolan, Beatrice; Langley, Hugh (27 November 2024). "AI improvements are slowing down. Companies have a plan to break through the wall." (in en). https://www.businessinsider.com/generative-ai-wall-scaling-laws-training-data-chatgpt-gemini-claude-2024-11.
- Chowdhury, Hasan; Nolan, Beatrice (11 November 2024). "OpenAI is reportedly struggling to improve its next big AI model. It's a warning for the entire AI industry." (in en). https://www.businessinsider.com/openai-orion-model-scaling-law-silicon-valley-chatgpt-2024-11.
- Hashmi, Sahar (3 Mar 2026). "Data Plateau: Hit The Scaling Wall With AI Or Remain An Innovator?" (in en). https://www.forbes.com/sites/saharhashmi/2026/03/03/data-plateau-hit-the-scaling-wall-with-ai-or-remain-an-innovator/.
- Heath, Alex (22 November 2024). "Is AI hitting a wall?" (in en). https://www.theverge.com/2024/11/22/24303470/ai-model-llm-progress-hitting-scaling-wall.
- Heikkilä, Melissa; Bradshaw, Tim; Criddle, Cristina; Hammond, George (15 Aug 2025). "Is AI hitting a wall?" (in en). https://www.ft.com/content/d01290c9-cc92-4c1f-bd70-ac332cd40f94.
- Hu, Krystal; Tong, Anna (15 November 2024). "OpenAI and others seek new path to smarter AI as current methods hit limitations" (in en). https://www.reuters.com/technology/artificial-intelligence/openai-rivals-seek-new-path-smarter-ai-current-methods-hit-limitations-2024-11-11/.
- Metz, Rachel; Ghaffary, Shirin; Bass, Dina; Love, Julia (13 November 2024). "OpenAI, Google and Anthropic Are Struggling to Build More Advanced AI" (in en). https://www.bloomberg.com/news/articles/2024-11-13/openai-google-and-anthropic-are-struggling-to-build-more-advanced-ai.
- Morrow, Allison (19 November 2024). "AI is hitting a wall just as valuations reach the stratosphere | CNN Business" (in en). https://edition.cnn.com/2024/11/19/business/ai-chatgpt-nvidia-nightcap.
- Shukla, Hemant (23 Dec 2025). "The AI Scaling Wall of Diminishing Returns: Of LLMs, Electric Dogs, and General Relativity" (in en). arXiv. doi:10.48550/arXiv.2512.20264.
