Yann LeCun, founder of AMI Labs, warned CNBC that AI labs like OpenAI and Anthropic risk a "big bubble explosion" if they do not cut costs or raise prices. LeCun stated that prices for AI services keep climbing while operating costs are not dropping fast enough, and that all of these companies are losing money, with investors effectively subsidizing usage. OpenAI CEO Sam Altman recently called AI costs for businesses a "huge issue." LeCun also called Elon Musk's xAI "a kind of failure," noting that the founding team has left and Musk can barely recruit top talent anymore; he does not expect xAI to compete with OpenAI or Anthropic. LeCun, who has clashed publicly with Musk for years over political views, is promoting "world models" rather than the large language models used by OpenAI and Anthropic. His company, AMI Labs, raised a billion dollars for that effort in March. LeCun noted that an LLM bubble burst could push more money toward his research but could also cool the market as a whole.