Elon Musk says AI companies have exhausted human data for training models

Elon Musk stated that AI companies have "exhausted" all human data for training models. He suggested that firms must now rely on synthetic data, created by AI, to develop new systems. This shift is already occurring in the industry. Musk explained that synthetic data could help AI models learn by generating content and grading itself. Companies like Meta and Microsoft have begun using this approach to enhance their AI models. However, Musk cautioned about the risks of "hallucinations," where AI produces inaccurate information. He noted that this makes it difficult to determine the reliability of synthetic data.