AI is now valuable because it does paid, useful work, making it the fastest-growing software business ever.
“We love people who are know-it-alls, but we don't pay them for it. We pay for people who do work.”
ai-economics
8 tracked signals on ai-economics.
Jensen Huang reframes AI compute economics: value is tokens generated, not CPU cores rented
“AI doesn't rent cores. AI generates tokens, and they sell tokens.”
AI labs face a narrow post-release window to recoup frontier model costs, and US data center buildout assumes a global market for US AI services.
“No one is building $100 billion dollar data centers to serve frontier models to whatever 100 companies the US government will allow access.”
OpenAI launches Economic Research Exchange to study AI's impact on jobs and the economy.
AI cost dropped 2,000x in 5 years, making agentic indeterminacy the new enterprise value driver
“in the agentic world, it is indeterminacy that actually creates value”
AI has shifted the industry from an engineering-bound problem to a capital allocation problem
“We've kind of moved the industry from like this engineering bound problem to a capital problem. That's fundamentally very different.”
A satirical piece mocks circular AI financing deals where investments loop back as inflated revenue.
“John reports that his AI investments have generated $10 billion in revenue this quarter and that he owns 5 percent of a $100 billion business.”
Enterprise AI adoption narrative is shifting toward cost management economics.