I Know When the Bubble Pops. My AI “Aha Moment.”
UNFTR Weekly Roundup Follow us on Bluesky , and check out Max’s contributor videos on the MeidasTouch Network! Was this newsletter forwarded to you? Sign up here! Max Notes Economies of Scale The most convincing argument against the AI economy that I’ve heard (and there are many) is that it breaks a fundamental economic law. Economies of scale. AI boosters have long said that the technology is in its infancy and will only continue to improve rapidly over time. Moore’s Law, check. Many industry leaders such as Sam Altman and Dario Amodei are beginning to reverse their claims that AI will displace the vast majority of jobs, and instead be closer to prior technological revolutions that created new opportunities at an even pace to displaced legacy roles. Creative destruction, check. But none of this compensates for the fact that for AI to improve and to create said opportunities, the cost structure over time grows commensurate with the technology. ...
