Nilay Patel says AI products don't justify their costs and companies lose money on them
Overview
Nilay Patel says AI products are not good enough to justify the costs of data centers, AI overviews and deepfake content, as reported by Simon Willison on November 6, 2026.
Patel also says agents are not real and that AI companies spend more than they earn on these products.
Patel says the industry will not recover until it builds products that users find valuable without needing to be persuaded.
Written by AI from the articles below · updated Nov 6, 12:30 PM ET
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- Simon WillisonBlogNilay Patel says AI products don't justify their costs and companies lose money on them
AINilay Patel says AI products are not good enough to justify the costs of data centers, AI overviews and deepfake content. He says agents are not real and that AI companies spend more than they earn on these products. He adds that the industry will not recover until it builds better products that users see value in without convincing.
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