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It depends on what you consider dead. I was using generative AI in 2020 before this hype wave really began, but it was a healthy and growing niche.

The current state of the art models aren't worth the unsubsidized cost/investment (future models might be but I'm very skeptical). The problem is huge companies are investing expecting ROI that I can't imagine they'll ever get. It's going to crash.

I'm not sure whether the code completion models will ever die. They aren't great but they are useful. Which is basically my assessment of AI as a whole. The vastly more expensive models that are marginally better are probably not sustainable, but local models and less expensive ones will probably stay with us.

But if you're talking mostly from an economic standpoint, yeah I'm pretty sure it's going to crash barring some significant breakthrough on cost reduction or output quality.