The quest to solve AI hallucinations is compared to the space race, with trillions in economic value at stake.The hallucination problem in AI is a longstanding challenge, requiring coherence and autonomy in open-world environments.A genuine solution to the hallucination problem would require 99.9% or higher accuracy in real-world contexts.Theoretical underpinnings suggest deep limitations in current machine learning approaches related to hallucinations.Cracking the hallucination problem could lead to transformative changes in governance, work structures, and human productivity.Claims of solving the hallucination problem so far lack the required level of reliability for critical functions.Solving the hallucination problem could have profound societal implications regardless of philosophical debates about AI sentience.Research continues intensively to explore various approaches to solving the hallucination problem in AI.The pursuit of achieving three nines of fidelity in AI remains a critical goal in advancing the field.The successful resolution of the hallucination problem could mark a significant milestone in technological development.