OpenAI, Google and Anthropic are struggling to build more advanced AI

Every negative headline I see about AI hitting a wall or being over-hyped makes me think of the early 2000's with that new thing the 'internet' (yes, I know the internet is a lot older than that). There is little doubt in my mind that ten years from now nearly every aspect of life will be deeply connected to AI just like the internet took over everything in the late 90's and early 2000's and is now deeply connected to everything now. I'd even hazard to say that AI could be more impactful.

It's strange to me that's your takeaway. The reason that the internet was overhyped in the 2000's is because it was and also heavily overvalued. It took a massive correction and seriously disruptive bubble burst to break the delusion and move on to something more sustainable.

I disagree that it was over hyped. It has transformed our society so much that I would argue it was vastly under-hyped. Sure, there were a lot of silly companies that sprang up and went away because they weren't sound, but so much of the modern economy is based on the internet that it is hard to say any business isn't somehow internet related today. You would be hard pressed to find any business anywhere that doesn't at least have a social media account. If 2000 was over-hyping things I just don't see it.

There were no smartphones in 2000, so the Web was overvalued at that point in time... until we all started carrying the Web in our pockets in the form of a portable rectangle.

Given that this is the case, why can't this be analogously true of “AI” as well? There's plenty of reason to believe that we're hitting a wall, such that, to progress further, said wall must be overcome by means of one or more breakthroughs.