AI Hits a Data Wall: Elon Musk Warns of Synthetic Reliance

In late 2024, Elon Musk declared that AI has exhausted all human-generated data, pushing tech giants like Meta, Microsoft, Google, and OpenAI to rely on synthetic data. While this shift could cut costs, Musk warns of “hallucinations” and biases creeping into AI models, potentially leading to their degradation. As of January 2025, the industry grapples with balancing synthetic innovation against the need for fresh, real-world data, ensuring AI remains both accurate and ethical. Who knew running out of data could be so... synthetic?