AI and Data Exhaustion: Just Use Synthetic Data and Recycle User Prompts
October 23, 2025
That did not take long. The Independent reports, “AI Has Run Out of Training Data, Warns Data Chief.” Yes, AI models have gobbled up the world’s knowledge in just a few years. Neema Raphael, Goldman Sach’s chief data officer and head of engineering, made that declaration on a recent podcast. He added that, as a result, AI models will increasingly rely on synthetic data. Get ready for exponential hallucinations. Writer Anthony Cuthbertson quotes Raphael:
“We’ve already run out of data. I think what might be interesting is people might think there might be a creative plateau… If all of the data is synthetically generated, then how much human data could then be incorporated? I think that’ll be an interesting thing to watch from a philosophical perspective.”
Interesting is one word for it. Cuthbertson notes Raphael’s warning did not come out of the blue. He writes:
“An article in the journal Nature in December predicted that a ‘crisis point’ would be reached by 2028. ‘The internet is a vast ocean of human knowledge, but it isn’t infinite,’ the article stated. ‘Artificial intelligence researchers have nearly sucked it dry.’ OpenAI co-founder Ilya Sutskever said last year that the lack of training data would mean that AI’s rapid development ‘will unquestionably end’. The situation is similar to fossil fuels, according to Mr Sutskever, as human-generated content is a finite resource just like oil or coal. ‘We’ve achieved peak data and there’ll be no more,’ he said. ‘We have to deal with the data that we have. There’s only one internet.’”
So AI firms knew this limitation was coming. Did they warn investors? They may have concerns about this “creative plateau.” The write-up suggests the dearth of fresh data may force firms to focus less on LLMs and more on agentic AI. Will that be enough fuel to keep the hype train going? Sure, hype has a life of its own. Now synthetic data? That’s forever.
Cynthia Murrell, October 23, 2025
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