Nov. 23, 2025 /Mpelembe Media/ — ExperienceBypass™, an advisory firm, announced their new report titled “The Real AI Bubble.” This report, authored by CEO Honorio J. Padron, warns that the AI market faces a structural collapse, arguing the actual bubble is architectural, not financial. The core thesis is that tens of thousands of smaller AI point solution companies will disappear over the next 36 to 48 months as global enterprises consolidate their technology around a few AI Native Platforms (or “AI Factories”) such as NVIDIA and Palantir. This consolidation is driven by the failure of most enterprise AI pilots and a demand for unified architecture, mirroring the standardisation seen in the ERP sector during the 1990s. Padron asserts that non-integrated point solutions lack a place as the AI Enabled Enterprise™ becomes the new operating model, acting as the central nervous system for modern businesses.
The predicted structural consolidation of enterprise AI architecture is being driven by several powerful forces, leading global enterprises to standardize around a small group of “AI Native Platforms,” known as AI Factories. This process is expected to cause tens of thousands of AI point solution companies to disappear over the next 36 to 48 months.
The report by ExperienceBypass™, “The Real AI Bubble: Inside Zero-Latency Capitalism™ and the Extinction of Many of the 80,000 AI Startups,” identifies the following drivers of this consolidation:
Explicit Forces Driving Consolidation
High Failure Rate of Pilots: A significant force is the documented failure rate of enterprise AI initiatives, with 95 percent of enterprise AI pilots failing (citing MIT 2024).
Absorption by Ecosystems: Point solutions are being absorbed by ERP and platform ecosystems.
Demand for Unified Architecture: There is a growing demand for unified architecture, which specifically includes the need for one digital twin, one ontology, and one governance layer.
Shift in Methodology: The industry is seeing a move from model driven AI to architecture driven AI.
Architectural Imperatives
The shift is fundamentally architectural, as enterprises are seeking platforms that can act as the central nervous system of the business. These AI Factories—including platforms from companies like Palantir, NVIDIA, C3 AI, Microsoft, IBM, AWS, and Google Cloud—are designed to integrate multiple technologies.
The need for deep integration means that the consolidated platforms will integrate:
Real time IoT.
OT (Operational Technology).
ERP (Enterprise Resource Planning).
CRM (Customer Relationship Management).
LLMs (Large Language Models).
Robotics and automation.
Digital twins.
According to Honorio J. Padron, Founder and CEO of ExperienceBypass™, non integrated point solutions simply have no structural place in the emerging AI Enabled Enterprise™. This indicates that the inability of narrow solutions to integrate comprehensively is a core driver of their extinction. The consolidation is described as the architecture solidifying rather than an AI bubble bursting.
This cycle of consolidation is compared to the similar structural consolidation that the ERP sector went through in the 1990s.
The are several companies that are identified as “AI Native Platforms,” also known as AI Factories, around which global enterprises are standardizing.
Three of the listed AI Native Platforms are:
- Palantir
- NVIDIA
- C3 AI
Other platforms mentioned in the sources include Microsoft, IBM, AWS, and Google Cloud. These platforms are predicted to become the central nervous system of the enterprise, integrating various technologies like IoT, OT, ERP, CRM, LLMs, robotics, automation, and digital twins.
Read the Full Report:
https://lnkd.in/eWmdWXZc