Elon Musk has stated that the AI industry has effectively exhausted the available real-world training data, a sentiment echoed by AI experts. During a live-streamed discussion, Musk emphasized the need for a shift towards synthetic data, which is generated by AI models, to continue advancements in the field. He highlighted that major companies like Microsoft and Meta are already leveraging synthetic data in their AI training processes. While synthetic data can reduce costs, it may also lead to concerns about bias and creativity in AI outputs. The industry must navigate these challenges moving forward.