Silicon Valley's recent fervor over artificial general intelligence (AGI) is waning, with industry leaders acknowledging overhype amid mounting evidence of limited returns from AI pilot projects. Notable figures including OpenAI’s Sam Altman and former Google CEO Eric Schmidt have tempered expectations, warning of bubble-like dynamics reminiscent of the dot-com era. A Massachusetts Institute of Technology study found 95% of corporate generative AI efforts fail to produce profits. Investors are reassessing the sustainability of the AI boom as skepticism replaces unchecked optimism.