The AI Boom’s Multi-Billion Dollar Blind Spot
June 25, 2025
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as posted by the channelAI reasoning models were supposed to be the industry’s next leap, promising smarter systems able to tackle more complex problems. Now, a string of research is calling that into question. In June, a team of Apple researchers released a white paper titled “The Illusion of Thinking,” which found that once problems get complex enough, AI reasoning models stop working. Even more concerning, the models aren’t “generalizable,” meaning they might be just memorizing patterns instead of coming up with genuinely new solutions. Researchers at Salesforce, Anthropic and other AI labs have also raised red flags. The constraints on reasoning could have major implications for the AI trade, businesses spending billions on AI, and even the timeline to superhuman intelligence. CNBC’s Deirdre Bosa explores the AI industry’s reasoning problem.
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Anchor: Deirdre Bosa
Produced by: Jasmine Wu, Laura Batchelor, Drew Troast
Edited by: Matt Soto
Animation: Jason Reginato, Josh Kalven
Senior Director of Video: Jeniece Pettitt
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The AI Boom’s Multi-Billion Dollar Blind Spot
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