Compute Oversupply, Illusion of Thinking, and the GPT-Realtime-2 Era — 2026-05-07#

Highlights#

Today’s chatter reveals growing skepticism around the economic realities of AI scaling, underscored by xAI’s surprising massive compute offload to Anthropic and explosive revelations about OpenAI’s shaky infrastructure financing. Meanwhile, as frontier models shift towards local agentic execution and advanced voice capabilities with GPT-Realtime-2, experts like Terence Tao are sounding alarms on the widening gap between algorithmic plausibility and actual veracity.