Yet we had the computational power to run backpropagation in the 1960s and small Transformers in the 1970s (I'm the author of both):
https://github.com/dbrll/Xortran (backprop on IBM 1130, 60s)
https://github.com/dbrll/ATTN-11 (Transformer on PDP-11, 70s)
What was missing wasn't the raw processing power, but the ideas and algorithms themselves. Because funding and research were completely discouraged during the AI winter, neural networks research was left dormant and we lost two decades.
They were simply too computationally expensive to train for the limited things they could do. It wasn’t until we had the ability to train large neural networks on commodity hardware that things really took off.
Tl;dr - compute was the bottleneck.
I am not associated with this channel/video, just love it. I’ve shared it here before.