PC Gamer argues that 2025 was a year full of high-profile AI embarrassments across games and entertainment, with Disney and Lucasfilm serving as the "opening salvo." From the report: At a TED talk back in April, Lucasfilm senior vice president of creative innovation Rob Bredow presented a demonstration of what he called "a new era of technology." Across 50 years of legendary innovation in miniature design, practical effects, and computer animation, Lucasfilm and its miracle workers at Industrial Light & Magic have blazed the trail for visual effects in creative storytelling -- and now Bredow was offering a glimpse at what wonders might come next. That glimpse, created over two weeks by an ILM artist, was Star Wars: Field Guide: a two-minute fizzle reel of AI-generated blue lions, tentacled walruses, turtles with alligator heads, and zebra-stripe chimpanzees, all lazily spliced together from the shuffled bits of normal-ass animals. These "aliens" were less Star Wars than they were Barnum & Bailey. It felt like a singular embarrassment: Instead of showing its potential, generative AI just demonstrated how out of touch a major media force had become. And then it kept happening. At the time, I wondered whether evoking the legacy of Lucasfilm just to declare creative bankruptcy had provoked enough disgusted responses to convince Disney to slow its roll on AI ventures. In the months since, however, it's clear that Star Wars: Field Guide wasn't a cautionary tale. It was a mission statement. Disney is boldly, firmly placing its hand on the hot stove. Other embarrassing AI use cases include Fortnite's AI-powered Darth Vader NPC, Activision's use of AI-generated art in what was widely described as the "weakest" Call of Duty launch in years, McDonald's short-lived AI holiday ad, and Disney's $1 billion licensing deal with OpenAI.

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Axios reports that venture capitalist Alex Davis is warning that a speculative rush to build data centers without committed tenants could trigger a financing crunch by 2027-2028. "This critique is coming from inside the AI optimist camp," notes Axios, as Davis' firm, Disruptive, "recently led a large investment in AI chipmaker Groq, which then signed a $20 billion licensing deal with Nvidia. It's also backed such unicorn startups as Reflection AI, Shield AI and Gecko Robotics." Here's what Davis had to say in his investor letter this morning: "While I continue to believe the ongoing advancements in AI technology present 'once in a lifetime' investment opportunities, I also continue to see risks and reason for caution and investment discipline. For example, we are seeing way too many business models (and valuation levels) with no realistic margin expansion story, extreme capex spend, lack of enterprise customer traction, or overdependence on 'round-trip' investments -- in some cases all with the same company. I am also deeply concerned about the 'speculative' data center market. The 'build it and they will come' strategy is a trap. If you are a hyperscaler, you will own your own data centers. We foresee a significant financing crisis in 2027-2028 for speculative landlords. We want to back theowner/users, not the speculative landlords, and we are quite concerned for their stress on the system." The full letter can be found here.

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